China will focus on high-end manufacturing development

China’s Premier Li Qiang announced on Wednesday that the government plans to support advanced manufacturing. The authorities will strengthen their policy guidance to bolster this sector. China is the second-biggest economy around the globe, while the United States takes first place. However, the two countries are engaged in a longtime rivalry, both straining to gain more influence. Currently, America is gaining the upper hand. Meanwhile, Beijing is trying to counteract the latter’s actions.

In the United States, national security recently restricted access to Chinese semiconductors, as well as AI technology. Li stated that the situation in China and in other countries is changing profoundly. Thus, it’s crucial for the country to develop its manufacturing industry. That means the government must increase efforts to strengthen the latter.

The Premier also added that China would create a legal business environment that would be international as well as market-oriented. The government will use its policy guidance to strengthen its plans. Several other officials noted that Beijing should build its science and technology policies in such a way as to increase the country’s self-reliance.

German officials expect inflation to soar. Why’s that? 

On Wednesday, Germany’s economic council stated that inflation might maintain its high level or even start increasing again. Economists are worried about the recent banking problems as they could hinder the central banks from continuing to hike rates. That would cause an inflation surge.   

Officials attending the meeting noted that the financial market risks soared recently, and that has made it more difficult for major central banks worldwide to hinder soaring inflation. If the central banks balk when they need to hike rates, prices could remain high for longer than analysts expected. However, the officials are treading more carefully due to trade-offs in the market. Council member Monika Schnitzer stated that analysts should monitor banks for any signs of weakness.