‘The next China is still China’: top diplomat pushes back against negative foreign sentiment

Foreign minister offers assurances to international audience that country will continue ‘opening its door wider’
China’s economic prospects are ‘booming’, Wang Yi says, refuting Joe Biden’s ‘ticking time bomb’ remarks

Two Sessions 2024 (Lianghui)

Orange Wang

Published: 9:41pm, 7 Mar 2024

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China’s leadership has doubled down on efforts to cast the economy in a positive light and reassure the international community that Beijing is committed to further opening to the world.

During the annual parliamentary gathering, top Chinese diplomat Wang Yi on Thursday joined the chorus of painting a rosy picture of China’s economic outlook, insisting the nation had maintained “strong” growth momentum.

The foreign minister, who is a member of the country’s primary decision-making body, the Politburo, also pushed back on sceptical rhetoric about the world’s No 2 economy, warning that such views would end up “harming oneself” and result in “missed opportunities” during a sideline event of the “two sessions”.

The remarks came as Beijing tries to revive confidence at home and abroad about the Chinese economy amid diminished expectations among international business leaders and the nation’s private entrepreneurs, which were seen as likely to aggravate the economic challenges and geopolitical risks facing China.

“China remains strong as an engine for growth. The next China is still China,” Wang said during his press conference.

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“Spreading pessimistic views on China will end up harming oneself and misjudging China will result in missed opportunities,” he said, adding that “China prospers through interaction with the world and the world is better off when China does well”.

The press conference came one day after a group of high-level Chinese officials, including the country’s top economic planner, finance minister, trade chief, top central banker and top securities regulator, struck the same positive tone on the economy while flagging more supportive measures.

China’s economy grew 5.2 per cent last year from 2022, slightly higher than the official target of around 5 per cent, according to official figures. Beijing has kept the goal the same for this year, in line with market estimates, but viewed as ambitious.

China is still grappling with a flurry of long-term challenges including a protracted property market crisis, falling exports, rapidly ageing demographics, lukewarm consumer spending, a jittery private sector, worried foreign investors and ongoing competition with the United States.

There has been growing speculation about whether China’s economic boom is over, and whether the Asian giant is losing its lustre as a choice place for business and investment.

Chinese official data showed that foreign direct investment in China fell by 13.7 per cent from a year earlier in dollar terms in 2023. The slump appeared as many multinationals held back from adding major new input into the country while many relocated parts of their operations.

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Foreign businesses are an important source for China’s technological expertise and a secondary line of communication for Beijing’s external relations.

The weak sentiment towards the Chinese economy, as growing worries suggested, might fuel restraint in economic ties with China through “de-risking” drives, and also influence broader assessments of the country by foreign decision makers, further straining Beijing’s external circumstances.

Last August, US President Joe Biden framed China’s economic situation as a “ticking time bomb”, saying the country was “in trouble” due to slowing growth.

But on Thursday, Wang said that China’s emerging industries are “booming”, its green transition had yielded “impressive results”, and social expectations were “improving steadily”.

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He said that the market of 1.4 billion consumers is unleashing opportunities for the world and China is “opening its door wider”, adding that the country is ready to expand the network of free-trade zones and keep the global supply chain stable and smooth.

He also said that China would continue to improve its business environment “to stabilise expectations and provide longer-term benefits to global investors”.

Wang’s comments on economic matters were rare for a Chinese foreign minister, and mirrored Beijing’s growing attention to overseas narratives on China’s economy.

Still, his press conference was one of the most watched events during this year’s two sessions, particularly after the earlier abrupt cancellation of Premier Li Qiang’s press conference on the final day of the event.

Wang announced that China will expand its pilot visa-free programme to include six new countries – Switzerland, Ireland, Hungary, Austria, Belgium and Luxembourg – starting from March 14.

The move was built on a series of initiatives to relax visa requirements in the second half of 2023 in a bid to woo more foreign tourists and investors.

“We hope more countries will offer Chinese citizens visa facilitation,” Wang added.