Chinese premier Li Qiang struck a confident tone in the country's economic performance and blasted the West's concept of economic derisking in a keynote speech at a meeting known as the Summer Davos on Tuesday, as Beijing sought to shore up China's patchy recovery amid a fading reopening boost and rising geopolitical tensions.

The premier said that China's GDP growth in the second quarter will likely outpace the first three months of the year, adding that the world's second-largest economy remains on track to achieve its annual growth target of around 5%. China has room and potential for further development, he said.

Several global institutions in recent days have trimmed their forecast for China's economic expansion in 2023, citing recent disappointing data pointing to a gloomy growth outlook. S&P lowered its forecast for China's GDP expansion this year to 5.2% from 5.5%. "China's key downside growth risk is that its recovery loses more steam amid weak confidence among consumers and in the housing market," the ratings company said.

China's No. 2 official reiterated that the country is open for business and welcomes the world. He also called for more mutual understanding and cooperation among countries to address global challenges amid rising regional conflicts.

Li said to global business leaders that some people in the West were hyping up what was called "reducing dependencies and derisking."

"These two concepts are false propositions," he said, adding that governments shouldn't politicize their economies and should let companies make their own decisions.

Premier Li's Tuesday comments came shortly after his trips to Germany and France last week. Beijing seeks to garner support from the European bloc when the U.S. and its European allies are looking to derisk their economies by reducing supply-chain dependency on China.

China's top leadership has been trying hard to lure global businesses to invest in the country as its economic recovery falters amid falling foreign direct investment in recent months. The State Council, China's cabinet led by Li, pledged earlier this month to roll out more policy stimulus to spur growth.

The World Economic Forum's Annual Meeting of the New Champions in Beijing's neighboring city Tianjin is the first in-person gathering of the forum since 2019 after China dismantled its zero-Covid restrictions.


Write to Singapore Editors at singaporeeditors@dowjones.com


(END) Dow Jones Newswires

06-27-23 0048ET