Li Keqiang, GDP and trade pick up, belt and road forum: 8 things from China’s economy in October

China’s first premier with a bachelor’s degree in law and a PhD in economics, Li pushed for the private economy, foreign investment and simplified government procedures.

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‘People’s Premier’: former Chinese premier Li Keqiang dies of a heart attack at age 68

2. GDP target looms into view

China’s economy grew by 4.9 per cent in the third quarter, year on year, which was better than expected, but down from the 6.3 per cent year-on-year expansion in the second quarter.

Officials said due to the low comparison base last year, China’s economy only needs to reach a year-on-year growth of 4.4 per cent in the fourth quarter to achieve Beijing’s full-year target of “around 5 per cent”.

3. Export decline slows

Western China’s Xinjiang Uygur autonomous region, meanwhile, defied Western sanctions in the first nine months of the year as its foreign trade hit a record high.

Overseas shipments in the first three quarters of the year jumped by 47 per cent from a year earlier, already surpassing the total for 2022.

Elsewhere, imports fell for the seventh month in a row after declining by 6.2 per cent year on year. Imports had fallen by 7.3 per cent in August.

4. Food prices ‘main culprit’ as inflation remains flat

Analysts pointed to a decline in food price inflation as being the “main culprit” for CPI edging down last month, while energy price deflation eased further due to the recent rise in oil prices.

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The producer price index (PPI), meanwhile, fell for a 12th month in a row, but the 2.5 per cent fall from a year earlier narrowed from the decrease of 3 per cent in August.

5. Deals galore at belt and road forum

The Belt and Road Forum for International Cooperation took place in Beijing in October, with Beijing intensifying efforts to build partnerships with members amid an increasing tech rivalry with the United States.

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6. Economic, financial working groups holds first meetings

Chaired by financial officials at the deputy ministerial level, the first economic and financial working group meetings between China and the US took place in October.

The economic meeting covered domestic and global macroeconomic situations, bilateral economic relations and cooperation in responding to global challenges, according to China’s Ministry of Finance.

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Senior finance officials, meanwhile, had “professional, pragmatic, candid and constructive” discussions over financial stability, supervision and regulation, according to the People’s Bank of China.

7. China, Australia reach wine tariff deal ahead of Albanese visit

China and Australia reached an agreement on a “proper resolution” of trade disputes over wine and wind towers in October, paving the way for Australian Prime Minister Anthony Albanese to visit Beijing in November.

Albanese will visit China from November 4 to 7, and will meet President Xi Jinping and Premier Li Qiang in Beijing and also attend the China International Import Expo in Shanghai.

Ahead of the meeting, the Post reported that Australia “ will not oppose China joining the CPTPP” – the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – and will “consider China’s application on its merits”.

8. Vice-Premier He Lifeng handed increased economic authority

The 68-year-old He, who was promoted to vice-premier in March, was confirmed as the office director of the Central Financial and Economic Affairs Commission, one of the powerful party organisations headed by Xi to manage the world’s second-largest economy.

South China Morning Post