Chinese Prime Minister: The Chinese economy is going through a sensitive moment and difficulties are worse than the beginning of the Covid crisis

Chinese Prime Minister Li Keqiang painted a bleak picture of the economy being undermined by the restrictions imposed to combat Covid-19, saying that it is going through a “delicate moment” in the face of difficulties “greater than those recorded in 2020.” Zero Covid strategy and its repercussions on the economy China, which has been facing a new epidemic wave for months, has been adopting a zero-Covid strategy aimed at reducing the number of deaths as much as possible thanks to closure measures, especially in Shanghai, since the beginning of April. This health policy, which Chinese President Xi Jinping fiercely defends, is having major repercussions on the economy, with a large number of stores and companies closing, factory activity slowing and supply chains disrupted. “Since March and more than that since April, economic indicators related to employment, industrial production, electricity consumption and freight transportation have registered a significant decline,” Li Keqiang said in a video conference on Wednesday in front of thousands of local officials. Record the lowest level of consumption and a rise in the unemployment rate He pointed out that “the difficulties are in some aspects and to some extent greater than those that were in 2020, when the epidemic was hitting hard” the country, according to a report by the New China News Agency. In May, China witnessed its worst economic performance in two years, with the lowest level of consumption and an unemployment rate close to the record rate. “We are now at a sensitive moment that will determine the economic direction for the whole of the year,” Li Keqiang said. We must seize this opportunity to get the economy back on track.” The economic slowdown threatens Beijing’s 5.5% growth target, in a politically sensitive year that is expected to see a renewal of Xi Jinping’s term as head of the Chinese Communist Party in the fall. However, the party derives its main legitimacy from the continuous increase in purchasing power. China delivers advanced air defense system to Serbia, Russia’s ally An American official: China is working hard to build an army capable of controlling Taiwan, even if Washington interferes Watch: Chinese horse dragon makes its way through crowds in Toulouse, France “Li Keqiang may have just paved the way for abandoning this year’s (set) growth target,” the Trivium China Bureau, which specializes in Chinese economic policy, said in a Thursday note. While lockdown measures are relaxed a bit in Shanghai, its 25 million residents are still under strict restrictions. In Beijing, the authorities are stepping up anti-Covid measures with a large number of shops and tourist sites closing or slowing down.

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