Xi Jinping says Chinese business having tough time

China’s president, Xi Jinping, acknowledged in his new year’s message that “some enterprises had a tough time” in 2023 as data showed a weakening of factory production deepened this month, but he vowed to step up the pace of the economy’s recovery.

Speaking on TV, Xi said: “Along the way, we are bound to encounter headwinds. Some enterprises had a tough time. Some people had difficulty finding jobs and meeting basic needs.”

The world’s second-biggest economy’s recovery remains sluggish, held back by a severe property slump and lacklustre global demand.

China’s factory activity shrank more than expected in December after a decline in new orders.

Clouding the economic outlook, the worse-than-expected figures boosted expectations of fresh stimulus measures in the new year.

Xi said China would “consolidate and enhance the positive trend of economic recovery, and achieve stable and long-term economic development.”

In 2024, the 75th anniversary of the founding of the People’s Republic of China, “we will consolidate and strengthen the momentum of economic recovery, and work to achieve steady and long-term economic development. We will deepen reform and opening up across the board,” he said.