China is facing an economic slowdown, suggest current reports. A Hong Kong Post report has stated that out of the thirty-one Chinese provincial governments, twenty-eight have announced reduced growth targets and policy goals for 2022 when compared to the targets of previous years, which clearly indicates that China’s economic slowdown has become a cause of worry for the government.
The current data of regions such as Shanghai, Guangdong and Beijing and many more, reported a lower growth rate when compared to the last year.
The fading external demand speaks against China’s official claims that the economy has picked up pretty well. Disrupted industrial chain owing to the Covid pandemic, global pressure of reduction in carbon footprint, global supply chain disruptions and ever-growing unemployment spells serious doubts on the government’s ability to bring back the economy on track, the media outlet reported.
The local governments across China have directed the teachers and other officials to return the bonuses while the bonuses for the civil services have been suspended in Shanghai, Jiangxi, Henan, Shandong, Chongqing, Hubei and Guangdong. This clearly indicates a fiscal crisis faced by the Chinese government.
Even the more developed regions such as Shanghai and Beijing have set a lower growth rate of 5 per cent, as opposed to 6 per cent the previous year. As if that was not enough, the Ukraine – Russia crisis is expected to increase the challenges for the already slowing Chinese economy.
China imports a lot of products from Ukraine such as Hi-Tech Equipments, Cereals, Ores Slag and Ash, and many more. The Ukraine crisis could add to the Chinese economic woes. This in turn has worried President Xi Jinping as it may negatively impact his bid for another term at the 20th Party Congress later this year.
Recently, the China Banking and Insurance Regulatory Commission had revealed that a total of 2,459 bank outlets of commercial banking institutions had closed down their operations and four of the major banks, namely, Industrial and Commercial bank of China (ICBC), the Agricultural Bank of China (ABC), the Bank of China (BOC) and the Construction Bank were forced to shut down a total of 187 branches and cut down 22,355 of the workforce, read the Hong Kong post.
