China's top economic policy makers on Wednesday struck back against widespread pessimism about the country's growth trajectory as Beijing sought to boost business confidence amid persisting headwinds.
In response to recent bearish comments on China's economy, Cong Liang, a senior state planner, said at a press briefing that such negative remarks were never realized in the past and wouldn't materialize this time.
China has weathered financial shocks and grown from the Asian financial crisis of 1997-98 and the 2008-09 global financial crisis, said Cong, deputy head of the National Development and Reform Commission. Although the world's second-largest economy is grappling with various challenges, China has shown economic resilience, he said.
Mr. Cong also said that the economy isn't experiencing deflation despite tepid inflation data. "Price indexes are lagging indicators of economic operations," Cong said, adding that China's overall price level is expected to gradually return near the annual average level as demand and market confidence improve.
Zou Lan, head of the monetary-policy department at the People's Bank of China, said at the same press conference that China's central bank and foreign-exchange regulator have the experience and tools to defend the Chinese yuan.
"The yuan's exchange rate against the U.S. dollar is very important, but it is not the whole story," Zou said. More attention should be paid to changes in the yuan's exchange rate against a basket of currencies, he said.
China's monetary policy still has ample room to respond to challenges and unexpected changes, Zou said, pledging more support for urban renovation and public-housing projects.
Officials from China's finance and industrial ministries also vowed to better aid economic growth in their respective policy domains, without announcing major stimulus plans.
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(END) Dow Jones Newswires
09-20-23 0045ET
