Official: Foundation of China's Economic Recovery not Solid Enough

People walk on a street as the coronavirus disease (COVID-19) outbreak continues in Beijing, China, January 13, 2022. REUTERS/Thomas Peter
People walk on a street as the coronavirus disease (COVID-19) outbreak continues in Beijing, China, January 13, 2022. REUTERS/Thomas Peter
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Official: Foundation of China's Economic Recovery not Solid Enough

People walk on a street as the coronavirus disease (COVID-19) outbreak continues in Beijing, China, January 13, 2022. REUTERS/Thomas Peter
People walk on a street as the coronavirus disease (COVID-19) outbreak continues in Beijing, China, January 13, 2022. REUTERS/Thomas Peter

The foundation of China's economic recovery is not solid enough, a senior Communist Party official said on Saturday, warning of possible spillover effects from global economic problems.

Some countries have to play a balancing act as they try to stabilize their economies, prices and financial markets, said Han Wenxiu, deputy head of the party's office for financial and economic affairs, adding that the global economy was at risk of stagflation.

Such risks come as many developed countries aggressively tighten their monetary policy causing problems for banks as well as bringing foreign debt woes and financial market turmoil, he said at a government-organized China Development Forum, without naming any specific countries.

As a result, global supply chains face restructuring, Reuters quoted him as saying.

"The foundation of China's economic recovery is not yet solid enough," Han said.

Recent economic data has shown that China's economy picked up from COVID-19 slumps after the government abandoned its zero-COVID strategy late last year.

China is confident of reaching its annual economic growth target of around 5%, Han said.

He said the growth target had taken into account the need to expand employment and improve people's livelihoods, as well as the potential growth capacity and various difficulties.

China has no apparent inflation or deflation at the moment, and it has a relatively large amount of room to maneuver on monetary policy, he said.

Han also said China would continue to expand market access and welcome foreign investment into the world's second largest economy.

"China welcomes companies from all countries to come and invest and expects foreign firms to hold a long-term view and develop extensively in the market," Han said.



Indonesia Expects to Conclude Free Trade Talks with EU by End of June

People attend a morning prayer on the street during Eid al-Adha celebrations in Jakarta, Indonesia, 06 June 2025. (EPA)
People attend a morning prayer on the street during Eid al-Adha celebrations in Jakarta, Indonesia, 06 June 2025. (EPA)
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Indonesia Expects to Conclude Free Trade Talks with EU by End of June

People attend a morning prayer on the street during Eid al-Adha celebrations in Jakarta, Indonesia, 06 June 2025. (EPA)
People attend a morning prayer on the street during Eid al-Adha celebrations in Jakarta, Indonesia, 06 June 2025. (EPA)

Indonesia said on Saturday that free trade negotiations with the European Union, which have been going on for nine years, are expected to finish by the end of June.

Airlangga Hartarto, the chief economic minister for Southeast Asia's biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday.

"Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025," Airlangga Hartarto said in a statement.

He did not disclose details about what agreements may have been reached.

Denis Chaibi, EU Ambassador to Indonesia, said: "Negotiations are ongoing and substance will determine timing. We will communicate in details when we have an outcome."

The EU is Indonesia's fifth biggest trade partner, with total trade between the two reaching $30.1 billion last year. Indonesia had a $4.5 billion trade surplus, Airlangga said.

Indonesia and the EU have previously disagreed on EU trade rules for products with potential links to deforestation that could affect Indonesian palm oil, as well as Jakarta's ban on exports of raw minerals.

Indonesian officials have been motivated to accelerate talks on free trade agreements, keen to diversify the country's export destinations as they deal with US tariff challenges.

Seeking to end US trade deficits worldwide, US President Donald Trump announced sweeping "reciprocal" tariffs that have since been paused until July.

Indonesia is facing a 32% tariff rate.