China has laid out a challenging economic growth target for 2024, acknowledging that attaining around 5% of GDP isn’t going to be straightforward. Premier Li Qiang, while presenting the fiscal goals for the year to the National People’s Congress (NPC), China’s legislative body, highlighted the internal and external stresses impacting the nation’s growth.
Taking cognizance of our successes, we’re also acutely conscious of the obstacles and issues that we face. Global economic expansion is waning, and regional hotspot issues continue to emerge persistently. This has led to an increasingly complicated, harsh, and uncertain external environment for China.
It is clear that the basis for China’s prolonged economic recovery isn’t sturdy enough. This is evident from the shortage of effective demand, surplus capacity in several sectors, low public anticipation, and an array of persisting risks and covert threats,” Li stated.
The growth target is in line with what the market anticipated and is identical to last year’s, including the 3% consumer price inflation (CPI) target. However, due to 2023 starting from a low point after three years of coronavirus constraints, achieving this growth target will prove tougher this year.
Marking the government’s resolve to steady the shaky property sector, the report left out President Xi Jinping’s phrase “homes are for living in, not for speculation” for the first time since 2019. Li underscored a fresh paradigm for the market that focuses on government-backed affordable housing.
In acknowledgment of investors’ grievances about decreasing predictability in China’s policies over recent years, Li vowed to enhance collaboration across the policy-making process. He stated, “we need to reinforce alignment between fiscal, monetary, employment, industrial, regional, scientific-technological, and environmental policies, besides integrating non-economic policies into the macro-policy orientation appraisal. Policy synchronisation must be improved to ensure that every policy is aligned and able to create synergy.”
Foreign direct investment in China has experienced a dramatic decline in recent months, with foreign corporations citing an uneven competitive landscape with local competitors as a concern. Li affirmed Beijing’s commitment to incentivising foreignowned companies in China to continue investing in the country and pledged to better their conditions.
“We aim to further trim the negative list for foreign investment. All barriers to foreign investment in manufacturing will be removed, and limitations relating to market access in the service industries, including the likes of telecommunications and healthcare, shall be lessened,” he stated.
The geopolitical landscape aggravating relations with both the US and European Union is one of the significant obstacles to the Chinese economy, according to Mr. Li. His report primarily targeted the economic conditions but didn’t hesitate to criticise Washington while advocating for the restructuring of global systems.
He emphasised the need for a balanced and structured multipolar world, economic globalisation that benefits all and is inclusive, and highlighted their commitment to fostering a novel style of international relations. Mr. Li asserted their firm position against any hegemonic, domineering and bullying acts and their support for fairness and justice on the international scale.
Stay informed with our Business push alerts sent straight to your mobile device offering premier news, analysis, and commentary. Keep yourself updated by connecting with The Irish Times on WhatsApp. Tune into our weekly Inside Business podcast for the most recent episode.