Page 32 - REPORT ON THE IMPLEMENTATION OF THE 2022 PLAN FOR NATIONAL ECONOMIC AND SOCIAL EVELOPMENT AND ON THE 2023 DRAFT PLAN FOR NATIONAL ECONOMIC AND SOCIAL EVELOPMENT

have increased global political and economic risks. Food and energy security are
acute issues. Global industrial and supply chains have suffered severe setbacks.

Cumulative effects of developed economies’ contractionary policies keep
manifesting, the momentum of world economic growth is fading, and global
financial markets are facing greater risks. With all this, instability, uncertainty, and
unpredictability in the external environment have become common.
Domestically, the foundations for our economic recovery have yet to be

consolidated; unbalanced and inadequate development remains a pronounced
problem; aggregate, structural, and cyclical problems are becoming more evident;
and China is still under the triple pressures of shrinking demand, supply shocks,
and weakening expectations.

First, the problem of insufficient total demand remains relatively acute. There
are still quite a few factors restraining the recovery and growth of consumption.
The underpinnings for investment growth in the manufacturing sector are weak,
resuming growth in real estate investment is an uphill battle, and non-government
entities are still relatively unwilling and unable to invest. In some localities,

projects cannot get sufficient support in terms of production factors, which is
posing fairly major constraints on infrastructure investment. Downward pressure
on the global economy is being compounded by the effects of protectionism,
growth of global trade is slowing down, and competition in the international

market is intensifying, which has made it more difficult for China to maintain
stable export growth.
Second, the supply side is facing powerful structural constraints. Our capacity
for scientific and technological innovation still needs to be enhanced, there are
prominent bottlenecks in some basic raw materials and key equipment, parts, and

components, and there are still many obstructions and blockages in industrial and
supply chains. We are experiencing uncertainties in ensuring stable production of
grain, and there is a tight balance between supply and demand for some
agricultural products and supplies. Prices of grains on the international market

remain high, which could cause ripple effects in the domestic market. Supply and
demand of coal are still tight, there are challenges in ensuring the supply of natural
gas, and our capacity for ensuring energy security during extreme weather events
needs to be improved. There is great pressure from growth in total energy
consumption, and we are facing quite a few challenges in reducing the intensity of

energy consumption.

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