China's economic growth impetus will be reigned in next year
China will keep its economic growth within a reasonable range in 2019 as the government tries to promote a steady growth, Beijing said on Thursday.
The government will strive to support jobs, promote reforms to reduce risks and increase trade and investment.
“We will promote steady growth, promote reform, adjust structure, benefit people’s livelihood and prevent risks in a coordinated way, and keep economic operation in a reasonable range,” the politburo said, according to the official Chinese news agency Xinhua on Thursday.
The government’s latest measures to secure steady growth include reductions in reserve requirements for banks, tax cuts and more spending on infrastructure.
“We should strengthen coordination and cooperation, focus on major contradictions, grasp the pace and strength of the economy, and strive to achieve the best policy mix and the maximum overall effect,” the politburo said.
The Chinese economy is already suffering from external factors such as the trade war with the US, since the rising tariffs are underlining China’s rising cost of labor at a time when the job market is under pressure, Citi economists said on Tuesday according to Bloomberg.
The trade war with the U.S. could cut China’s export growth by almost 50% in 2019, putting around 4.4m jobs at risk.
“It is a reality that China is losing some of its cost competitiveness, especially in labour-intensive and low-value-added sectors,” according to the report.
“Although shifting the supply chains is not feasible in real time, manufacturers may seriously weigh the option of leaving China if punitive tariffs last longer than expected."