Xi asks Chinese officials to enter economic race with US

The issue of the China-US competition has been raised in recent weeks in Xi's meetings with senior officials in the economic and financial bloc, the Wall Street Journal (WSJ) reported on Tuesday, citing sources familiar with the discussions. This comes as investors are ditching China due to growing business risks, and rising interest rates elsewhere. China witnessed USD 17.5 billion worth of portfolio outflows last month, an all-time high, CNN reported citing the data from the Institute of International Finance (IIF).

The US-based trade association said that this capital flight by overseas investors "unprecedented."

Amid the growing economic insecurity, the Chinese leader said that ensuring stability and economic growth is extremely important, as the US is declining both politically and economically.

The relevant Chinese government agencies are discussing plans to accelerate the implementation of large construction projects, as well as to issue coupons for individuals, designed to stimulate consumer spending, WSJ's sources said.

In the final quarter of 2021, the US economy outpaced China, growing 5.5 per cent year-on-year compared to China's 4.0 per cent.

US President Joe Biden claimed that the American economy grew faster than the Chinese for the first time in 20 years. According to WSJ, this caused discontent among a number of senior Chinese officials.

Last week, the International Monetary Fund (IMF) slightly downgraded its forecast for economic growth in China to 4.4 per cent this year and to 5.1 per cent in 2023.

According to the IMF forecast, the zero-COVID strategy pursued in China entails an increase in restrictive measures that have a negative effect on China's private consumption and overall economic growth.