China's current economic approach can hurt 'Canadian businesses', experts say

Concerns have been raised over China's approach toward its national economic policy. China is suffering from mediocre economic growth, and the issue was neglected during the Chinese Communist Party's recently concluded 20th National Congress. Experts have suggested that such negligence by China can severely impact Canadian businesses.

China, on October 24, announced that its GDP (Gross Domestic Product) had risen 3.9 per cent in the third quarter as compared to the same period in 2021. China's current GDP figure is below its growth target of 5.5 per cent. Moreover, according to experts, China needs to attain a growth rate of 8 per cent to support its economic growth. Notably, China postponed releasing its GDP figures on October 18.





Co-founder of Intercedent, an Asia-focused business advisory firm, John Gruetzner, stated that China delayed releasing its GDP figures to keep it out of headlines during the congress. According to Charles Burton, a former counsellor at the Canadian Embassy in China, the struggling Chinese economy can be "disturbing for Canadian business". He said that China's housing crisis and zero-COVID policy had hurt the country's economy the most.

On October 12, Deputy Prime Minister of Canada, Chrystia Freeland, asked Western democratic countries to give preferences to trade among themselves and limit business interactions with countries, like China and Russia, that are working against their values. These points can be well-adjusted in Canada's upcoming Indo-Pacific policy.

FAQs

1). What was China's GDP growth rate for the third quarter of this year?
China's GDP growth rate for the third quarter this year was 3.9 per cent.

2). Who is Chrystia Freeland?
Chrystia Freeland is the deputy prime minister of Canada.