en.1Berita.com – “China Faces Economic Challenges, Including Business Downturns and Rising Unemployment, Acknowledged by President Xi Jinping in New Year’s Speech”

China is grappling with significant economic challenges, encompassing issues in the business sector and job market, as acknowledged directly by President Xi Jinping in his New Year’s Eve address. Xi Jinping’s admission during this New Year’s speech marks the first acknowledgment since 2013. The world’s second-largest economy is currently wrestling with various problems, such as weakened demand, escalating unemployment, and a downturn in business confidence.

“Some companies are facing tough times. Some people find it hard to get jobs and meet basic needs,” stated Xi Jinping, as quoted by CNN on Tuesday (2/1/2024). He admitted that these issues weigh on his mind and expressed determination to leverage the momentum of economic recovery.

A few hours before his speech, China’s National Bureau of Statistics (NBS) released the monthly Purchasing Manager’s Index (PMI) survey. The survey indicated a decline in factory activity in December to its lowest level in six months. The manufacturing PMI dropped to 49 last month, down from 49.4 in November. Notably, a PMI above 50 signifies expansion, while a figure below 50 indicates contraction. December marked the third consecutive month of contraction in China’s manufacturing PMI.

Throughout the year, China’s economy has faced a series of challenges, including blows to the property sector, high youth unemployment rates, and increased financial pressures on local governments.

Another challenge lies in the political issues with Taiwan. Xi Jinping pledged to reunify mainland China with Taiwan, emphasizing the stance on Taiwan, which operates its own government. “China will surely reunite, and all Chinese on both sides of the Taiwan Strait must be bound by the same goal and share in the glory of the rejuvenation of the Chinese nation,” he asserted.

This statement comes just two weeks before the Taiwan presidential election on January 13, introducing a sharper tone compared to previous New Year’s speeches. The control of Taiwan is a fundamental goal for Xi Jinping to “revitalize” China into a strong and globally significant position. The Communist Party of China claims Taiwan as its territory, although it has never governed it, and does not rule out the possibility of using force to reclaim the island.