Amidst economic challenges and declining business sentiment, China has set a modest growth target of around five per cent for the current year, with a focus on creating 12 million jobs. Premier Li Qiang, in his inaugural work report to the National People's Congress (NPC), outlined the government's commitment to addressing rising unemployment concerns while navigating through the post-COVID economic slowdown.
The NPC annual session, attended by Chinese President Xi Jinping and over two thousand delegates, serves as a platform to deliberate on key initiatives aimed at bolstering the country's economic growth trajectory.
Continuing its proactive fiscal and prudent monetary policies, China plans to maintain a deficit-to-GDP ratio of three per cent, with an increased government deficit of 180 billion yuan from the previous year's budget.
Reflecting on the achievements and challenges of the past year, Premier Li emphasized China's resilience amidst a complex global economic landscape. Despite geopolitical tensions and the lingering impact of the COVID-19 pandemic, China's GDP surpassed 126 trillion yuan, marking a 5.2 per cent increase.
However, the economic recovery remains uneven, with various sectors grappling with structural and cyclical challenges. Issues such as sluggish global economic growth, geopolitical conflicts, and internal structural imbalances pose significant hurdles to sustained growth.
In particular, concerns linger over the real estate sector, exacerbated by the collapse of major firms like Evergrande, which accumulated massive debts. Premier Li underscored the need for comprehensive reforms to address systemic risks and promote sustainable economic development.
While China's growth target of five per cent for the current year is deemed feasible, it requires concerted efforts to deepen reforms, enhance openness, and foster innovation. The NPC delegates and members of the Chinese People's Political Consultative Conference (CPPCC) have convened in Beijing for their annual sessions, highlighting the collective commitment to advancing China's legislative agenda and driving economic progress.
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