BEIJING (Reuters) – China must be on guard against “black swan” risks while fending off “gray rhino” events, President Xi Jinping said on Monday, adding that the economy faces deep and complicated changes, state news agency Xinhua reported.
A “black swan” event refers to an unforeseen occurrence that typically has extreme consequences, while a “gray rhino” is a highly obvious yet ignored threat.
Xi’s warning came after the release of data on Monday showed the economy posted the slowest growth in 28 years last year, hurt by faltering domestic demand and bruising U.S. tariffs.
Local governments and state organizations should find a balance between stabilizing growth and fending off risks, controlling the pace and intensity of such policies, Xi said in remarks during a meeting with provincial and department officials.
Sliding growth had pressured the government to roll out more stimulus to avert a sharper slowdown. The central bank has cut the reserve requirement ratio for banks five times in the past year.
Economic operations would be maintained within a reasonable range, Xi said, adding financing difficulties of small businesses will be resolved pragmatically while authorities would also step up support for companies to stabilize jobs.