How will China achieve the 5 percent economic growth target?

The ruling Chinese Communist Party’s biggest and most important political gathering of the country’s top legislature and political advisory body, also known as the Two Sessions, has begun in China. China’s two sessions are one of the country’s most important events, during this annual session China’s national governance system and potential are in focus! Chinese Premier Li Keqiang presented the official work report. The review of the Government Work Report by the Chinese Premier is an important part of the two sessions, in fact, the work report is both the country’s report card and road map, not only summarizing the works of the previous year, but also The priorities and goals of the government in terms of socio-economic development are also presented.

In an early report, China has set its 2023 economic growth target of around 5%, meaning it is back to being the world’s economic engine. Here it becomes important for you to know that this marks a significant uptick from the 3 per cent growth seen last year. Yet, this is in line with the expectations of most global banks and international organizations! At the beginning of the year, several provinces and cities announced 5 to 5.5 growth targets. This bullish outlook reflects China’s confidence in its ability to recover from the pandemic, adapting its COVID-19 policies to boost production and consumption.

The Chinese New Year holiday saw a surge in domestic travel and tourism and further strengthened the country’s growth prospects after easing measures announced in December last year. China’s strong growth has boosted the global economy, especially the U.S. And it is expected to be a welcome boost for the European Union, which is currently battling high inflation and interest rates. It is also significant that China’s inflation target for 2023 is around 3 percent. China projects inflation at 2 percent in 2022, a remarkable achievement considering inflation levels of nearly double digits in the West.

China’s coherent economic policies, combined with the size of its economy, make it a strong growth fixture for the global economy in times of economic downturn. The government work report states that China is committed to promoting coordinated and balanced regional development, ensuring that millions of new jobs are created every year, safeguarding food and energy security for large populations, promoting private businesses There should be support, there should be regulatory reforms to improve the business environment.

Meanwhile, innovation development, strengthen science and technology capabilities, upgrade manufacturing, accelerate digitization, expand consumption market, rural revitalization, high-standard opening up, green development, strengthen public services and social Strengthening the safety net is all part. About its high-quality development strategy that ensures China’s long-term, sustainable development.

In the report, Premier Li Keqiang said it was necessary to prioritize economic stability, setting a target of creating about 12 million urban jobs this year, up from last year’s target of at least 11 million. On the other hand, if we talk about China’s defense budget, according to a draft released by the Ministry of Finance on Sunday, China is set to increase defense spending by 7.2% to 1.56 trillion yuan ($230 billion) this year.

Explain that China’s defense budget increased by 7.1% to 1.45 trillion yuan last year. With this, China is the second largest spender on defense after the US, with a total defense budget of US$816 billion for 2023. The world’s largest army, the 2 million strong PLA is becoming increasingly powerful and assertive with an ever-increasing army, aided by a rising defense budget. All these efforts mean that China is not only eyeing 5 per cent growth for one year, but is also eyeing long-term modernization goals through 2035 and 2050.

(Devendra Singh)