ICYMI – China's Xi Jinping made vague promises on the economy in a speech

<p>Chairman of the Chinese Communist Party Xi Jinping spoke in a televised address to mark the incoming new year. </p><p>He made vague comments about supporting the economy:</p><ul><li>China will "consolidate and enhance the positive trend of economic recovery, and achieve stable and long-term economic development,"</li><li>"We must comprehensively deepen reform and opening up, further boost confidence in development, enhance economic vitality, and make greater efforts to promote education, promote science and technology, and cultivate talents." </li><li>China will promote high-quality development and balance development and security in a well-coordinated way</li></ul><p>Xi hasn't done much to balance development and security. His main focus is on nationalism at the expense of the economy. Let's see if that changes. </p><p>To be fair, China has rolled out stimulus efforts, albeit piecemeal. But, with high and growing debt the days of sweeping stimulus have passed. </p><p>***</p><p>Later today we get the latest manufacturing PMI from China:</p><ul><li><a href="https://www.forexlive.com/news/economic-calendar-in-asia-02-january-2024-china-manufacturing-pmi-december-20240101/" target="_blank" rel="follow" data-article-link="true">Economic calendar in Asia 02 January 2024 – China Manufacturing PMI (December)</a></li></ul><p>Over the weekend we had a very poor official manufacturing PMI released:</p><ul><li><a href="https://www.forexlive.com/news/china-dec-manufacturing-pmi-490-vs-495-expected-services-504-505-expected-20231231/" target="_blank" rel="follow" data-article-link="true">China Dec Manufacturing PMI 49.0 (vs. 49.5 expected) &amp; Services 50.4 (50.5 expected)</a></li></ul><p>There are some green shoots appearing for the economy, The official manufacturing PMI is not one of them. </p><p>Make like a tree … </p>

This article was written by Eamonn Sheridan at www.forexlive.com.