CHINA’S economy grew around 5.2 per cent in 2023, surpassing the government’s official growth target for the year without relying on “massive stimulus,” Chinese Premier Li Qiang said in Davos.

“Last year in 2023, the Chinese economy rebounded and moved upward with an estimated growth of around 5.2 per cent, higher than the ‘around 5 per cent’ target set at the beginning of last year,” Li said on Tuesday (Jan 16) in his first appearance as China’s No 2 official at the annual World Economic Forum.

“In promoting economic development, we did not resort to massive stimulus,” Li added. “We did not seek short-term growth while accumulating long term risk.”

Li – who was the highest-level official the nation has sent to Davos since President Xi Jinping attended in 2017 – underscored the efforts China has taken to inspire confidence in its economy and government.

His comments came a day before the country is set to report a slew of economic data for December and 2023, including the latest gross domestic product growth figures.

The premier’s remarks on Tuesday confirmed what had been widely expected by economists: That China would surpass its official growth target for the year, set last March during a key annual political meeting.

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That goal was deemed conservative by many economists at the time of its announcement. But persistent deflationary pressures and the prolonged property slump proved major challenges through 2023.

While Li said the country did not use “massive stimulus” to hit the target, authorities did roll out some support in the form of rate cuts and fiscal aid.

The focus is now on how Beijing will keep that momentum going this year as it grapples with an erosion of confidence.

The country is considering one trillion yuan (S$187 billion) of new debt issuance under a so-called special sovereign bond plan this year to shore up the economy, according to people familiar with the matter.

Adding to the concerns, official data showed foreign investment in the third quarter of last year turned negative for the first time since 1998. That likely reflected less willingness by firms to re-invest profits in China, a trend partly due to the higher return abroad given the yield gap with the US.

Li reiterated a pledge to improve the environment for foreign firms in China. That includes shortening the “negative list” for foreign investment, removing restrictions on access in the manufacturing sector, and ensuring fairer treatment of foreign companies.

“With regard to concerns of some multinationals on issues such as cross border data flow and participation in government procurement, we are working on the formulation of relevant policies,” Li said.

Xi’s also hit that theme in the past: In a November speech to business executives in the US, the Chinese leader signalled that improving the business environment was a priority.

A meeting during that trip with President Joe Biden has served to stabilise ties with the US after a year of friction, though that is being tested by the election in Taiwan of a new leader who is likely to press for closer ties with Washington, frustrating Beijing.

Xi has been trying to balance a desire to revive an economy hampered by a slide in the property sector, while also strengthening national security amid lingering military and trade tensions with the US. Foreign executives have been especially spooked by probes of consultancy firms, the expansion a vague anti-spy law and moves restricting access to data. BLOOMBERG