China Aims for 5% Economic Growth Amid Challenges

The People's Republic of China has set an ambitious target of approximately 5% economic growth for the current year, as indicated by the government's work report cited by AFP ahead of the National People's Congress taking place in Beijing.

The report outlines the government's intention to create an additional 12 million urban jobs this year, alongside a goal to maintain an inflation rate of around 2%. These objectives are expected to be formally announced by Premier Li Qiang during his address at the opening of the Congress.

This growth target is considered ambitious, particularly as China, the world's second-largest economy, has been grappling with weak domestic demand and low consumer confidence since the onset of the COVID-19 pandemic. Moreover, the country is facing a debt crisis in its vast real estate sector, compounded by tariffs imposed on Chinese goods by the US administration, which further strain its export-driven economy.

Analysts suggest that this growth target signals the government's commitment to bolster the economy through increased investments.

In addition to economic measures, the report also reveals that China plans to increase its defense spending by 7.2%. This decision comes in light of China's ongoing efforts to modernize its military and the geopolitical tensions related to various international issues, including the situation in Ukraine and tensions surrounding Taiwan. President Xi Jinping has set a goal for the complete modernization of the military by 2035.

The National People's Congress is the foremost political gathering in China, where around 3,000 delegates convene for several days to discuss government reports. The meetings are closely monitored, with votes taking place on laws that have already been approved by the ruling Communist Party. While significant amendments to proposed legislation are rare, these sessions provide a valuable glimpse into the priorities of China's top leadership.