BEIJING (National Times) – China set its lowest annual GDP target in decades Saturday, as Premier Li Keqiang warned of a “grave and uncertain” outlook against the backdrop of the coronavirus, a property slump and uncertainty over the war in Ukraine.<\/p>\n
Li announced the unusually modest target of around 5.5 percent growth for 2022 — the lowest since 1991 — in his speech opening the annual session of China\u2019s rubber-stamp parliament.<\/p>\n
Addressing about 3,000 members of the National People\u2019s Congress (NPC) in Beijing\u2019s cavernous Great Hall of the People, Li said the world\u2019s second-largest economy “will encounter many more risks and challenges, and we must keep pushing to overcome them”.<\/p>\n
The target was based on a need to maintain stable employment, basic living needs and “guard against risks”, Li said in China\u2019s version of a state of the nation address.<\/p>\n
China\u2019s economy is a key driver of global growth and crucial domestically for the ruling Communist Party, which has based its legitimacy on delivering steady economic expansion and improved standards of living.<\/p>\n
The party is deeply concerned over social instability in its huge population should economic growth dip too low.<\/p>\n
– Stability is \u2018top priority\u2019 –<\/p>\n
Economic stability must be a “top priority”, Li added.<\/p>\n
The annual parliament session is a week of highly choreographed meetings laying out the party\u2019s political priorities, economic expectations, and foreign policy goals, and this edition comes in a year in which President Xi Jinping intends to further cement his grip on power.<\/p>\n
Prior sessions have unveiled high-profile legislation such as the tough national security law imposed on Hong Kong and reversals to the country\u2019s one-child policy, but no flagship laws are expected this year.<\/p>\n
Chinese economic growth has slowed markedly in recent years from its past boom decades, when annual expansion sometimes exceeded 10 percent.<\/p>\n
China has been largely successful in controlling the virus and limiting its economic impact.<\/p>\n
But the economy has been hit lately by a cascading property market slump, government regulatory crackdowns on the property, tech and financial sectors, and smothering containment measures to nip virus outbreaks but which have dampened consumer demand.<\/p>\n
China\u2019s economy last year handily exceeded the official target of at least six percent growth, expanding by 8.1 percent, but the pace slowed significantly in the second half.<\/p>\n
Li pledged to support growth through tax relief and measures to keep real estate prices and markets stable.<\/p>\n
Despite the global economic uncertainty triggered by the war in Ukraine, Li made no direct reference to the conflict.<\/p>\n
China has so far avoided openly condemning the actions of its diplomatic partner Russia.<\/p>\n
The government also announced Saturday that China\u2019s military budget — the second largest in the world after the United States — will increase by 7.1 percent this year to 1.45 trillion yuan ($230 billion), a rate in line with recent years.<\/p>\n
China has poured billions of dollars into transforming its huge military into a world-class force rivalling that of the US and other Western powers.<\/p>\n
– Party meeting looms –<\/p>\n
For a third year running, the legislative forum is taking place in pared-down fashion due to Covid.<\/p>\n
Policymakers are expected to discuss strategies for boosting births, with fears of a demographic crisis sparked when the birth rate plummeted to a record low last year.<\/p>\n
Li said China would improve support for parents having children.<\/p>\n
The legislative session is the lesser of two political events this year, as the Communist Party gears up for its 20th Congress.<\/p>\n
The pivotal autumn gathering, held every five years, is expected to easily secure Xi a third term after he changed the constitution to remove term limits.<\/p>\n
“The mantra in 2022 will be stability, stability, stability” in the run-up to the autumn party meeting, said Yuen Yuen Ang, author of “China\u2019s Gilded Age.”<\/p>\n
A key resolution passed last year was designed to help Xi strengthen his grip by setting in stone his vision for China.<\/p>\n
“President Xi is on a mission to redefine the meaning of development in China and also the basis for the Party\u2019s legitimacy,” she added.<\/p>\n","protected":false},"excerpt":{"rendered":"
BEIJING (National Times) – China set its lowest annual GDP target in decades Saturday, as Premier Li Keqiang warned of a “grave and uncertain” outlook against the backdrop of the coronavirus, a property slump and uncertainty over the war in Ukraine. Li announced the unusually modest target of around 5.5 percent growth for 2022 — […]<\/p>\n","protected":false},"author":1,"featured_media":26165,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-26161","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","entry"],"yoast_head":"\n