China GDP grew around 5.2% in 2023 without relying on 'massive stimulus', Premier Li says at Davos

Li Qiang said in Davos, Switzerland. “Last year in 2023, the Chinese economy rebounded and moved upward with an estimated growth of around 5.2%, higher than the ‘around 5%’ target set at the beginning of last year," Li said on Tuesday in his first appearance as China’s No. 2 official at the annual World Economic Forum.

“In promoting economic development, we did not resort to massive stimulus," Li added. “We did not seek short-term growth while accumulating long-term risk." Li — who was the highest-ranked official the nation has sent to Davos since President Xi Jinping attended in 2017 — underscored the efforts China has taken to inspire confidence in its economy and government. His comments came a day before the country is set to report its official 2023 GDP growth figure.

“It is unusual for senior officials to front-run an announcement in such specific terms, and presumably stems from Li’s desire to set a confident tone for the global audience at Davos," Michael Hirson, China economist at 22V Research wrote in a note. The NASDAQ Golden Dragon China Index, a gauge tracking Chinese companies listed in the US, fell 3.8% overnight to the lowest level since November 2022. Chinese electric vehicle maker Nio Inc.

and Internet giant Baidu Inc. were among the biggest losers. Yields on China’s 10-year government bonds were steady at 2.53%, approaching a two-decade low due to bets on more easing by Beijing.

The onshore yuan fell 0.2% against the dollar to the weakest level since mid-November as US yields rose. The offshore yuan was unchanged early Wednesday Beijing time. Li continued his charm offensive at a luncheon hosted by World Economic Forum founder Klaus Schwab, along with heads of 14 multinational companies, including