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THE Chinese government unveiled an annual economic growth target of “around 5 per cent” today.
The announcement was made by Prime Minister Li Qiang during the opening session of the 3,000-member National People’s Congress and came despite the possible negative impact of a looming trade war with the United States.
The healthy economic target is the same as the last two years, which has seen China achieve one of the strongest economic growth rates in the world.
The waters will become a little more choppy this year after the US-imposed higher tariffs on Chinese products. But it still compares favourably with its main economic competitor, with the US recording growth of around 2.3 per cent.
Mr Li said: “A target of around 5 per cent is well aligned with our mid- and long-term development goals and underscores our resolve to meet difficulties head-on and strive hard to deliver.”
The government also said in a draft budget released on Wednesday that defence spending would rise 7.2 per cent this year to 1.78 trillion yuan (around £194 billion). It remains under 1.5 per cent of GDP, proportionally lower than all other permanent UN security council members.
The 32-page congress report acknowledged both international and domestic challenges.
“An increasingly complex and severe external environment may exert a greater impact on China in areas such as trade, science, and technology,” the report said.
“Domestically, the foundation for China’s sustained economic recovery and growth is not strong enough. Effective demand is weak, and consumption, in particular, is sluggish.”
The report highlighted artificial intelligence in a section on fostering “industries of the future,” saying the government would support the application of large-scale AI models, smart manufacturing equipment, connected vehicles and intelligent robots.
It also reiterated the announcement by the Communist Party of China in December that the central bank would shift its monetary policy from “prudent” to “moderately loose” for the first time in over a decade.
