China's cabinet held an emergency meeting with more than 100,000 participants on Wednesday, according to state media, as top leaders urged new measures to stabilize an economy battered by the country's stringent Covid-19 restrictions.
The unexpected video teleconference by the State Council was attended by officials across provincial, city and council levels, according to a report in the government-owned Global Times. High-ranking Chinese officials were also present, including Premier Li Keqiang, who urged authorities to take action in sustaining jobs and reducing unemployment.The world's second-largest economy has suffered across various sectors since a Covid wave spread in March, prompting lockdown measures in many major cities — most notably the financial hub Shanghai, where many have been unable to leave their homes or neighborhoods for a month and a half.Li said that in some aspects, the economic impact seen in March and April has surpassed that of 2020 during the initial outbreak of the coronavirus, according to Global Times. He pointed to several indicators including unemployment rates, lower industrial production and cargo transportation.The premier has become increasingly vocal about the economic downturn in recent weeks, calling the situation "complex and grave" earlier in May — but Wednesday's comments may paint the grimmest picture yet.Investment banks are slashing their forecasts for China's economy this year. Earlier this week, UBS lowered its full-year GDP growth forecast to 3%, citing risks from Beijing's strict zero-Covid policy. China has said it expects growth of around 5.5% this year. The world's second biggest economy reported growth of 8.1% last year, and 2.3% in 2020, the slowest pace in decades.