China's Xi Jinping Warns Of Obstacles Ahead In First Speech After Stimulus Plans

(Bloomberg) -- President Xi Jinping urged caution in the face of what he said could be a rough patch ahead for China, in his first public comments since the government announced an unprecedented stimulus package.

“We must be mindful of potential dangers and be prepared for rainy days,” Xi said on Monday in a speech marking the 75th anniversary of the founding of the People’s Republic of China.

Xi didn’t provide any new details on the economic measures in his speech to the National Day reception held at the Great Hall of People in Beijing. The effort includes interest-rate cuts and support for the housing and stock markets.

“The road ahead cannot be smooth,” Xi said. “There will be obstacles and difficulties, even major challenges like surging torrents and storms.”

China’s economy has been slowing, as the prolonged housing slump, weak domestic demand and falling prices combined to put this year’s growth target increasingly out of reach. It remains to be seen whether the announced support and a promised increase in spending mean a lasting turnaround is underway.