Chinese leadership admits to new economic problems

ISTANBUL

The Chinese leadership Thursday admitted the world’s second-largest economy is facing some new problems, state media reported.

“Some new situations and problems have emerged” in the current running of the economy, according to a Communist Party Politburo meeting chaired by President Xi Jinping.

However, the party said: “It is necessary to take a comprehensive, objective, and calm view of the current economic situation, face up to difficulties, strengthen confidence, and effectively enhance the sense of responsibility and urgency to do a good job in economic work.”

Yet the meeting said the fundamentals of the Chinese economy, and favorable conditions such as a “vast market, strong economic resilience and great potential,” remain unchanged.

“New quality productive forces have reported steady development, and solid efforts have been made to guarantee people's livelihood,” it added.

It vowed to save the private economy, stabilize its property sector, and ensure fiscal expenditures.

The ruling party's admission of problems in the economy comes two days after Beijing announced policies to boost the economy.

On Tuesday it announced cuts to the mortgage rate for existing housing and its reserve requirement ratio.