- Chinese Premier Li Keqiang said
China 'seconomy is worse off in some ways than it was when the pandemic first hit. - "Economic indicators in China have fallen significantly," Li said Wednesday following a meeting with officials.
The
China's currency dropped 0.9% against the
"Economic indicators in China have fallen significantly, and difficulties in some aspects and to a certain extent are greater than when the epidemic hit us severely in 2020," Li said following a meeting with local officials and financial firms.
The warning comes as strict COVID-19
On Wednesday, Li suggested that even eking out growth in the current quarter may be a struggle. The last time China's economy hit negative territory was the first quarter of 2020, when the COVID-19 pandemic first hit.
"We will try to make sure the economy grows in the second quarter," he said, according to a transcript of his speech obtained by the Financial Times. "This is not a high target and a far cry from our 5.5% goal. But we have to do so."
Li listed a number of other red flags, noting that in some provinces only 30% of businesses have reopened while corporate liquidations soared above 23% in April. Many small and mid-sized businesses as well as local officials have told him "their worst days have come."
In addition, power generation, freight transport, and new bank loans all slipped in the first half of May, he said, according to the FT.