China's Strategic Shift: Boosting Economy Amidst Geopolitical Challenges

Chinese Vice Premier Ding Xuexiang announced stronger policy support for the economy, enhancing AI technologies, and targeting a 5% growth. Despite geopolitical tensions and a drop in foreign investments, China aims to expand domestic demand and facilitate foreign trade and investment.

In an assertive pledge towards bolstering China's economic prospects, Vice Premier Ding Xuexiang highlighted significant policy support aimed at ensuring the nation's desired growth targets for the year. Speaking at the prominent business and political gathering in Hainan, Ding underscored advancements in artificial intelligence and other technologies as critical growth drivers.

The remarks come amidst China's ambitious efforts to counterbalance the impact of geopolitical tensions and entice foreign investors back to an economy recovering post-pandemic. Nevertheless, despite concerted policies to expand domestic demand, concerns persist among foreign investors about regulatory challenges and lingering geopolitical risks.

To alleviate these concerns, the Chinese administration is aiming to promote institutional openness and facilitate greater market access for global investors. Moreover, a focus on growing competitiveness in emerging sectors like NEVs, AI, and bio-manufacturing remains central to China's economic strategy, navigating the complexities of global trade dynamics.

(With inputs from agencies.)