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.



Saudi Port of NEOM Halves Transit Time by over 50% via Regional Trade Corridor 

The initiative lays the foundation for long-term ambitions and reinforces Port of NEOM’s growing role in advancing Saudi Arabia’s maritime and logistics goals. (SPA)
The initiative lays the foundation for long-term ambitions and reinforces Port of NEOM’s growing role in advancing Saudi Arabia’s maritime and logistics goals. (SPA)
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Saudi Port of NEOM Halves Transit Time by over 50% via Regional Trade Corridor 

The initiative lays the foundation for long-term ambitions and reinforces Port of NEOM’s growing role in advancing Saudi Arabia’s maritime and logistics goals. (SPA)
The initiative lays the foundation for long-term ambitions and reinforces Port of NEOM’s growing role in advancing Saudi Arabia’s maritime and logistics goals. (SPA)

Saudi Arabia’s Port of NEOM conducted a successful pilot trial of a new strategic intra-regional corridor connecting key trading hubs in Saudi Arabia, Egypt, and Iraq. The initiative, conducted by the Port of NEOM and the Logistics Private Sector Engagement Council, more than halved the shipment transit time compared to traditional routes.

As part of the pilot project, the first shipments departed from Cairo, passing through Safaga Port and then across the Red Sea to the Port of NEOM before continuing overland to their destination in Erbil, Iraq, covering over 900 kilometers, reported the Saudi Press Agency on Monday.

The project’s success exemplifies effective integration among various governmental and regulatory bodies, including the Transport General Authority; the Zakat, Tax and Customs Authority; and private-sector partners including shipowners, key exporters and importers, export councils, and logistics companies.

The initiative delivers a highly effective, integrated and competitive logistics solution, demonstrated by a reduction in transit time of more than 50% on routes from Egypt compared to traditional pathways. It not only highlights the efficiency gains achievable through collaboration, but also signals the broader potential to significantly reduce costs and transit times across other regional and global trade corridors.

The initiative lays the foundation for long-term ambitions and reinforces Port of NEOM’s growing role in advancing Saudi Arabia’s maritime and logistics goals.

The port uses its unique strategic geographical location on the Red Sea, near the Arar border, which serves as a primary entry point into Iraq. The unique location positions the port as a vital regional gateway, connecting major global trade routes. By linking critical inland logistics corridors, it facilitates seamless trade flows between Asia, Africa, Europe and the Middle East, unlocking new opportunities for cross-border commerce and economic growth.

Building on the success of the initiative, the corridor demonstrates a scalable model for enhancing inland logistics connectivity within Saudi Arabia and enhances the nation’s position as a central global logistics hub in regional and international trade.

It supports the Saudi Vision 2030 goal of building a diversified economy, through the development of a world-class, integrated logistics ecosystem, linking ports, roads and customs centers.