China Establishes 5% Growth Target Amid Ongoing Trade Conflict with US
China has set a growth target of 5 percent due to the escalating trade war with the US, focusing on enhancing domestic demand. This includes increasing the fiscal deficit to 4 percent, creating new jobs, and raising defense spending by 7.2 percent for military modernization. Premier Li Qiang highlighted challenges in both domestic and international contexts during his address to the National People’s Congress.
The People’s Republic of China has established a growth target of approximately 5 percent amid an ongoing trade dispute with the United States, emphasizing the prioritization of domestic demand as the primary catalyst for economic advancement. This target was disclosed by Premier Li Qiang at a recent Communist Party meeting, reflecting the country’s response to challenges such as youth unemployment and low consumer spending.
To combat these economic hurdles, the Chinese government has also committed to a fiscal deficit increase, setting it at 4 percent for the year, the highest level in three decades. Premier Li presented this adjustment as part of broader measures to enhance employment and stimulate demand, with plans to create about 12 million new jobs in urban areas and aim for an inflation rate of 2 percent.
During his address to nearly 3,000 delegates at the National People’s Congress, Premier Li highlighted the dual challenges facing China: a challenging international environment and a continually weakening domestic economic foundation. He stressed the need for prompt action to tackle insufficient consumer demand, which has been impeding recovery efforts.
Additionally, China’s draft budget revealed a 7.2 percent increase in defense spending, amounting to 1.78 trillion yuan ($245 billion). This increase aims to facilitate the modernisation of the military amid assertive regional dynamics and competition with the United States. Enhancing military capabilities is a strategic priority for President Xi Jinping, who aspires to achieve substantial advancements by the year 2035.
In summary, China has established a conservative growth target of 5 percent, aiming to shift its economic focus to domestic demand amidst external pressures from trade tensions with the United States. The government’s fiscal policy encourages increased spending to address unemployment and enhance consumption. Furthermore, a rise in defense spending illustrates the country’s commitment to military modernization amidst regional strategic challenges. These initiatives reflect China’s resolve to navigate a complex economic landscape effectively.
Original Source: www.aljazeera.com
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