Chinese economic planners expressed optimism on Wednesday about the future of the world’s second-largest economy. Despite concerns raised by the Asian Development Bank and the Organization for Economic Cooperation and Development, Chinese officials believe that the economy is showing signs of improvement. Cong Liang, vice chairman of China’s chief planning agency, noted that past resilience during crises and positive factory output and tourism figures indicate that the economy is on the path to recovery.

While acknowledging the challenges of reviving growth, the officials emphasized their confidence that the ruling Communist Party would ensure any slowdown is temporary. They stated that the decision-making arrangements of the party Central Committee and the State Council have been effective. Chinese leaders have taken steps to stimulate growth, including reducing reserve requirements for banks and lifting real estate transaction restrictions in smaller cities.

However, the pandemic and a severe downturn in the property sector have impacted China’s economy. The Asian Development Bank has revised its growth forecast to 4.9 percent for 2023, citing weakening domestic demand and the correction in the property sector. The OECD has also lowered its global growth outlook, taking into account China’s slowdown and real estate troubles.

Surveys conducted by the American Chamber of Commerce in Shanghai and the European Union Chamber of Commerce in China revealed a decline in confidence among global investors and companies operating in China. Uncertainty about rules and regulations was cited as a growing problem. Chinese officials have been countering concerns raised by Western critics, emphasizing the shift towards a more sustainable model of growth that focuses on technology and consumer spending.

The Chinese government has set up a “private economy development bureau” to support private industries, aiming to address the trend favoring state-owned enterprises over the private sector. Overall, Chinese officials remain optimistic that united efforts and a focus on domestic development will overcome any obstacles.