BEIJING: The external environment for China’s trade will still be grim and complex in the second half of the year, Premier Li Keqiang said on Monday, adding the government must work hard to stabilise foreign trade and investment and meet its annual targets.
Li made the remarks on the opening day of the Canton Fair, the country’s oldest and biggest trade fair. It is held online this year due to the coronavirus pandemic.
Meanwhile, the commerce ministry said China’s foreign trade faces increasing uncertainties, and complex and severe risks and challenges in 2020.
The risk of world economic recession is rising and domestic firms, especially small and medium-sized companies are facing mounting employment pressure, the ministry said in a report on its website, adding that China’s foreign trade will continue to be under pressure in the short to medium term.
China’s statistics bureau meanwhile said whether the country’s economy can grow during the second quarter will depend on its performance in June.
The National Bureau of Statistics, in a statement, said the Chinese economy has not yet returned to normal levels and that external risks have clearly increased.
Another report said real estate investment and sales in China both quickened in May, pointing to continuing momentum as the property sector gradually recovers from the impact of the coronavirus outbreak.
The property market is a key driver of growth in the world’s second-largest economy, and was among many segments of the economy hit hard by the coronavirus crisis and tough containment measures.
Real estate investment in May rose 8.1% from a year earlier, up from 7% growth the previous month, based on data from the National Bureau of Statistics on Monday.
For the first five months of the year, property investment fell 0.3% on year, far less than in previous months as the economy begins to slowly emerge from its coronavirus shutdown.
Consumption remains soft, however, amid job losses and concerns about the risk of a second wave of infection.
Property sales by floor area jumped 9.7% in May, the fastest pace since July 2018 and compared with a 2.1% fall in April.
New construction starts measured by floor area rose 2.5% last month, compared with a 1.3% drop in April.
Funds raised by China’s property developers fell 6.1% in the January-May period, compared with a 10.4% % drop for the first four months of 2020.
“May data showed that the impact from the epidemic has gone and China’s property market will continue to heat up going forward,” said Zhang Dawei, a Beijing-based analyst with property agency Centaline.
Separately, China’s average new home prices in 70 major cities rose 0.5% in May from the prior month, matching the pace in April.
On an annual basis, home prices expanded 4.9% in May, slightly less than April’s 5.1% pace.
Beijing still refrains from using the real estate sector as a short-term stimulus, even as the economy struggles to recover from its first contraction in decades in the first quarter. – June 15, 2020, Reuters
