Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

President tells China to get used to slower growth, damping hopes for renewed stimulus

A woman walks past a fashion boutique outlet under construction covered by its advertisement board at a shopping mall in Beijing, China Monday, May 12, 2014. Chinese president Xi Jinping has told the country to get used to slower growth, damping expectations of a new stimulus, following weakening trade and manufacturing. Economic growth slowed in the latest quarter to 7.4 percent after last year's full-year expansion of 7.7 percent tied 2012 for the weakest performance since 1999. (AP Photo/Andy Wong)

Enlarge Image

A woman walks past a fashion boutique outlet under construction covered by its advertisement board at a shopping mall in Beijing, China Monday, May 12, 2014. Chinese president Xi Jinping has told the country to get used to slower growth, damping expectations of a new stimulus, following weakening trade and manufacturing. Economic growth slowed in the latest quarter to 7.4 percent after last year's full-year expansion of 7.7 percent tied 2012 for the weakest performance since 1999. (AP Photo/Andy Wong)

BEIJING, China - China's president has told the country to get used to slower growth, damping expectations of a new stimulus.

President Xi Jinping's weekend comments come amid weakening trade and manufacturing. Economic growth slowed in the latest quarter to 7.4 per cent after last year's full-year expansion of 7.7 per cent tied 2012 for the weakest performance since 1999.

"We must boost our confidence, adapt to the new normal condition based on the characteristics of China's economic growth in the current phase and stay cool-minded," Xi said, according to the official Xinhua News Agency.

The ruling Communist Party is trying to steer the economy to self-sustaining growth based on domestic consumption instead of trade and investment.

Other leaders have ruled out more stimulus, but unexpectedly weak demand for Chinese exports has forced Beijing to backtrack and launch mini-stimulus efforts last year and in March. Official plans call for annual trade growth of 7.5 per cent but so far this year total imports and exports are down by 0.5 per cent.

Analysts say the ruling party appears willing to accept economic growth below its 7.5 per cent target this year so long as the rate of creation of new jobs stays high enough to avoid political tensions.

Speaking during a visit to the central province of Henan, Xi said Saturday the government will focus on longer-term reforms aimed at stabilizing growth.

China needs to prevent risks and "take timely countermeasures to reduce potential negative effects," Xi said. He said Beijing will focus on longer-term reforms aimed at stabilizing growth.

"This is the clearest sign I have seen that a broad-base monetary stimulus to elevate that current slowdown will not eventuate," said Evan Lucas of IG Markets in a report.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Sudden Surge: Flood of 2014
Opportunity Magazine — The Bakken
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates