China's economy facing 'very serious and complicated situation'

China's economy is facing a very serious and complicated situation.

China's economy grew 5.2% in the second quarter, but domestic stimulus packages have not been as effective as expected. Retail sales in June grew more slowly than expected and were much weaker than in May.

In this situation, China's Commerce Minister said the government has launched a "toolbox" to avoid the risk of economic recession in the second half of the year and implemented new policies to promote domestic consumption as well as develop new forms of consumption.

According to Minister Wang Wentao, China's economy is gradually improving, long-term fundamentals remain unchanged, the consumer market has great potential and strong resilience.

In fact, over the past four years, consumer retail sales in China have grown by an average of 5.5% per year and are forecast to exceed 50 trillion yuan (about 7 trillion USD) this year.

According to the World Bank (WB), China has also surpassed the US in real purchasing power, 1.6 times that of the US last year. Domestic consumption contributes about 60% to economic growth. With a total value of goods trade reaching 6,160 billion USD in 2024, China maintained its position as the world's largest goods trading country for the 8th consecutive year, up 32.4% compared to 2020.

In the coming time, China will continue to reform to attract foreign investment, especially in high-tech fields such as artificial intelligence (AI) and semiconductor manufacturing.

Minister Wang Wentao recently met with Nvidia CEO Jensen Huang and called on multinational companies to continue providing quality products to the Chinese market. With measures to boost consumption and improve the investment environment, China hopes to maintain its current steady economic growth momentum.

Regarding trade relations with the US, Minister Vuong Van Dao called on the US to continue to lift more trade restrictions after Nvidia was approved to export chips to China.

Mr. Vuong Van Dao stated that China wants to bring trade relations with the US back to a stable foundation after bilateral economic and trade relations have experienced many ups and downs in recent years.

The two countries are still important partners, and although the proportion of bilateral trade in each country's total trade has decreased, China-US trade remains stable.

Minister Wang Wentao made it clear that China is willing to work with the US to enhance dialogue and communication, expand common ground, reduce misunderstandings, strengthen cooperation, and jointly bring bilateral economic and trade relations back onto a track of healthy, stable and sustainable development./.

According to VNA

Source: https://baothanhhoa.vn/kinh-te-trung-quoc-dang-doi-mat-voi-tinh-hinh-rat-nghiem-trong-va-phuc-tap-255257.htm