BEIJING — China held a rare nationwide meeting via teleconference Wednesday to bolster an economy battered by Covid.

Analysts were able to see the urgency of the situation and the scale of the challenges facing the country in order to reach its goal of 5.5% annual GDP growth.

Premier Li Keqiang spoke during the videoconference. According to CNBC, he said that “The difficulties” in some areas were even more than the severity shock from the pandemic of 2020. state media report.

He warned how the economy is at a “critical point” for determining its full-year trajectory, and called on officials to “work hard” — for growth in the second quarter and a drop in unemployment,The report stated.

Mainland China attempted to stop its worst Covid infestation since the beginning of 2020 with strict travel restrictions and stay-home orders. Companies from abroad have lost sales and produced less as a result.

The number of participants in the Teleconference was not disclosed by state media, but Wednesday’s evening news broadcast showed that there were a lot. large conference rooms of peopleParticipants from various provinces will be able to join the meeting.

Zong Liang is the chief researcher of Bank of China.

Zong indicated that direct communication will improve the effectiveness of Covid policies and help to manage it. Zong pointed out that policies are often transmitted across multiple levels of government. Some locales may have even taken unnecessary harsh measures.

China’s size is evident in its 31 regions at the province level and 2,800 at the county level. CNBC reached out to the information office of China’s State Council for clarification about financial media reports that detailed the attendance levels at local government level.

According to Goldman Sachs analyst, “Chinese policymakers need to act faster in order support the economy” after April’s very low activity and May’s anemic recovery.

According to them, the conference was a teleconference with representatives of the local governments at all levels (provincial, county and municipal).

Analysts suggested that Li’s call for growth in the third quarter may also reflect an implicit acknowledgement of the fact that the 5.5% growth goal set early in March is extremely challenging.

State media reported that the State Council will send teams Thursday to inspect policy implementation in 12 provincial-level regions.

While there has been a decline in the number of Covid cases, analysts noted that local authorities are being more proactive. more cautious about relaxing Covid controls.Another two investment banks have reduced their estimates for China’s GDP by 2% this week. one as low as 3%.

Jianwei, senior economist in greater China for Natixis, stated that the effectiveness of announced economic support measures remains to be proven.

Xu spoke during a webinar on Thursday, saying that “the key question is how can we revive mobility in our economy.” There are likely to be more actions needed to get the economy back at pre-pandemic levels. [of low]Economic confidence

The official report of Wednesday’s nationwide teleconference did not mention China’s Covid controls, known as the “dynamic zero-Covid policy.”

An additional high-profile article in state media earlier Wednesday focused on how Chinese President Xi Jinping led his country to success through its innovative zero-Covid Policy. It also noted China’s promising economic prospects.

The State Council released many measures to support growth earlier this week.