Stimulus measures signal China's focus on 5-pct GDP growth target: OCBC expert

China's economic stimulus policies show a clear policy shift that underscores the government's commitment to achieving the gross domestic product growth target of around five percent for 2024, an expert from OCBC Bank has said.

The Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting in September to analyze and discuss the current economic situation and plan future economic strategy.

Tommy Xie, who heads Greater China Research at OCBC Bank in Singapore, told China Global Television Network (CGTN) that the meeting was "one of the game-changers" that could boost confidence and signal a turning point for China's growth prospects.

"The Politburo meeting is really one of the game-changers. I think they are sending a very strong signal that growth is important for them. As we know, usually at the September Politburo meeting they don't talk about economic matters. So, the implied message is – the five-percent growth target is still very important for this year. China will try its best to achieve around five-percent growth target. But now, with this announcement in particular, we are seeing more support for consumers. I think those might potentially translate into growth to stronger growth in the last quarter of the year. That's why I think around five (percent) is still possible," Xie said.

While consumption in China received a boost during the ongoing National Day holiday, Xie believes the period between now and the Chinese New Year will be crucial in determining whether the policy is effective.

"Hopefully we can go back to the five to six percent kind of range in terms of retail sales. But, in terms of the Golden Week Holiday, because those measures were just announced. How fast it can translate to the actual spending? So (that is) the part we need to monitor. I guess for next year, in particular towards the Chinese New Year, that could be the moment of truth, right? We will try to assess how effective those policies are in changing consumer behavior to instill confidence in the consumers. So, I think, from now to the Chinese New Year next year, it will be a critical window to monitor," he said.

As for the medium- and long-term economic outlook, Xie expects innovation and consumption to play increasingly important roles.

"Initially, we do think the economy may slow down to around the 4.5-percent range, or it could be even towards the four-percent range. Because China is facing a number of headwinds in the medium term – whether being an aging society, whether being the still low propensity to consume and also, in particular, the property market. The contribution from the property market is declining. On the other hand, some of the sectors are picking up, for example, EVs, and innovation. If China can really revive that animal spirit, if China can really boost consumption, then that might actually, potentially add another leg to the long-term growth," Xie said.

Stimulus measures signal China's focus on 5-pct GDP growth target: OCBC expert

A delegation of 40 students and teachers from seven Chinese mainland universities on Thursday wrapped up their nine-day visit to Taiwan. They set off for Taiwan on Nov. 27 and visited universities, historical sites, scenic spots, as well as sports, sci-tech and cultural venues on the island, widely engaging with locals throughout the tour.

The delegation made the tour at the invitation of the Taiwan-based Ma Ying-jeou Culture and Education Foundation.

"The young people from both sides of the Strait share the same root, and we are having a harmonious communication this time. We also welcome young people from Taiwan to visit the mainland for exchange," Cao Yibo, a student from Peking University, told reporters during the tour.

The delegation included table tennis Olympic champion Ma Long who studies at Beijing Sport University, and air rifle Olympic champion Yang Qian of Tsinghua University.

"In the future, I would like to visit Taiwan again. I did not expect that so many compatriots in Taiwan would come to welcome and us and pay so much attention to our exchange tour," Ma said.

Hsiao Hsu-tsen, executive director of the Ma Ying-jeou Culture and Education Foundation, saw off the delegation at the airport on Thursday, and said the mainland students and teachers had received Taiwan residents' heartfelt welcome wherever they went.

"The farewell dinner party was held yesterday evening, when almost all students from the mainland shared their feelings. What moved me so much is that every one of them thanked people here, because the latter sincerely and warmly welcomed them wherever they went during the nine-day tour. They told me that when they go back, they will tell their relatives and friends that people in Taiwan are kind, hospitable and warm. I believe that is the most important purpose of the exchange across the Strait," he said.

Calling youth exchanges a foundation of cross-Strait relations in the future, Hsiao said the foundation will carry on and continue to promote such exchanges across the Strait.

This is the second delegation of mainland teachers and students visiting Taiwan at the invitation of the Ma Ying-jeou Foundation, following the visit by a first delegation in July last year.

Delegation of mainland university students, teachers wraps up Taiwan visit