Georgieva called on China to rely on domestic consumption to develop the economy (French)
The head of the International Monetary Fund, Kristalina Georgieva, confirmed - today, Sunday - that China needs to “renew itself” with economic policies that accelerate the resolution of the real estate market crisis and enhance its consumption and productivity.
Georgieva said - in statements during a meeting of senior Chinese officials and executives from international companies -: “China is at a crossroads. It will either rely on policies that succeeded in the past or renew itself for a new era of high-quality growth.”
Officials speaking at the opening of the China Development Forum expressed their confidence that China will achieve its economic goals, including recording growth of about 5% this year, and pledged to provide more support to companies in sectors of strategic importance, areas that Chinese President Xi Jinping described as “new productive forces.” ".
But those commitments fell short of the more radical changes urged by the International Monetary Fund.
Georgieva said that an analysis conducted by the Fund showed that a more consumer-focused policy mix could add $3.5 trillion to the Chinese economy over the next 15 years.
The head of the fund explained that, in order to achieve this, China needs to take steps that she described as decisive to complete incomplete housing projects stuck due to the bankruptcy of developers and reduce the risks arising from the debts of local governments.
"A key feature of high-quality growth is greater reliance on domestic consumption, and achieving this depends on enhancing the spending capacity of individuals and families," Georgieva said.
The statements of the head of the International Monetary Fund were considered important at the beginning of a two-day meeting during which Beijing is looking to deliver a message that China is open for business.
More than 100 foreign executives and investors attended the China Development Forum and a series of smaller closed sessions with Chinese officials on Friday and Saturday.
Other officials highlighted Xi's commitment to boosting investment in "new productive forces," sectors that officials said included internet-connected electric cars, spaceflight and advanced pharmaceuticals.
China's Sinopec net profits decline
In China, the China Petroleum and Petrochemical Company (Sinopec) announced - today, Sunday - a 9.9% decline in net profits in 2023, affected by the decline in oil and gas prices despite receiving support from the recovery in fuel demand.
The world's largest oil refining company by production capacity stated in a filing to the Shanghai Stock Exchange that net income amounted to 60.5 billion yuan ($8.37 billion), based on Chinese accounting standards.
Sinopec said in a statement to Reuters that the company faced a "complex operating environment and intense competition" last year.
The decline in 2023 was slightly worse than in 2022, when the company recorded a 6.9% decline in net income as a result of the impact of anti-coronavirus restrictions on demand for fuel and chemicals.
These are figures about the company's performance during the year 2023 and its future expectations
Gasoline sales of the major state oil and gas company rose 14.3%
The company's diesel sales increased 6.4%.
Jet fuel sales rose 49.5%.
Refinery oil consumption increased 6.3% last year to a record level of 257.52 million tons, or about 5.15 million barrels per day.
Company expectations
The company expects consumption to rise to 260 million tons this year.
Sinopec expects its crude oil production to fall to 279.06 million barrels this year from 280.23 million barrels in 2023.
The company expects to increase production of natural gas to 1.380 billion cubic feet from 1.292 billion cubic feet.
The petrochemical business remained weak, with sales of chemical fibers and plastics declining by 1.8 percent.
Sinopec plans capital spending of 173 billion yuan this year to cover key investments such as exploration and development, down from 176.8 billion yuan last year.
Source: Reuters