China forecasts ‘heavy rains’ as Red Sea clouds growth prospects
Beijing’s ambassador to Britain has voiced concern over the impact of the Red Sea shipping crisis and other international flashpoints on the economic outlook in China and globally this year.
Speaking at British-based think tank Asia House, Zheng Zeguang said China was at the forefront of global growth prospects – contributing more than 30 per cent of the total – but that the momentum seen last year was vulnerable to shocks.
“Looking ahead, there will be heavy rains in the year 2024,” he said. “External demand will continue to be weak, and the uncertainties we are confronted with in so many places around the world mean we need to redouble our efforts in stabilising the market and restoring confidence.”
Mr Zheng also noted the role of elections around the world in a year when more than two billion people are eligible to go to the polls, including in Britain, where he voiced hope the winner of the election would have a “good grasp” of the Asia-Pacific region and would work with China to increase “mutual trust”.
Anne-Marie Trevelyan, the
Foreign Office’s minister of state for Indo-Pacific affairs, responded to Mr Zheng by noting that Foreign Secretary Lord David Cameron had underlined the importance of the seas in international stability.
“The Foreign Secretary has called this an ‘age of insecurity’, and that insecurity can fan out both by land and by sea. And of course the recent situations in the Red Sea are a blunt reminder of what that looks like,” she said.
“Something that became particularly stark in 2023 is that Euro-Atlantic and Indo-Pacific security are clearly inseparable. Understanding that, and for that reason, that’s why the UK and so many of our partners want to be part of sustaining a free and open Indo-Pacific.”
Monday’s US and British air strikes on Houthi forces in Yemen – the eighth round authorised by Washington in its effort to protect international shipping, and the second with British involvement – have raised the stakes for the growth outlook projected by Asia House.
The think tank expects China’s economy to grow by 4.5 per cent this year, and the whole Asia Pacific by more than 5 per cent.
“Economies that rely heavily on food and energy imports are very likely to see a strong inflationary effect if global food and energy prices rise quickly,” Asia House said.
“There is a risk that the Houthis could continue to escalate tensions in the Red Sea, increasing volatility within global energy markets.”
The Chinese envoy voiced hope the winner of Britain’s election would have a ‘good grasp’ of the Asia-Pacific region