China sets 5% growth target amid rising global tensions
Economic growth at the level of 5% GDP—Premier Li Qiang confirmed on Wednesday the Chinese government's target, despite growing trade tensions. Along with a 7.2% annual increase in defense spending, Beijing will strengthen public safety management due to rising crime.
The head of the government presented the goals for the current year and reported on the cabinet's work over the past year while speaking at the opening of the annual session of the National People's Congress (NPC), China's parliament.
Maintaining annual growth at around 5% of GDP, similar to the past two years, does not surprise experts.
The Chinese economy officially grew by 5% in 2024, meeting the level set at last year's NPC session. This followed the implementation of extensive stimulus measures to address the issue of declining domestic consumption and significant concerns in the real estate market.
Li encouraged faster action, so that the currently insufficient domestic demand becomes the main driver of economic growth.
Beijing will also increase the budget deficit to 4% of GDP, which amounts to 5.66 trillion yuan (779 billion USD), announced the premier.
Referring to trade disputes, Li noted that "the multilateral trading system is experiencing disruptions, and tariff barriers continue to rise." China will "oppose unilateralism and protectionism in all forms," announced Li Qiang.
The defense budget of the PRC will increase by 7.2% to about 245 billion USD, at the same pace as last year.
The government responds to a series of brutal murders
In response to a series of brutal crimes, including mass murders, the premier announced that Beijing "will modernize the Chinese national security system" to ensure "social stability and strengthen public safety management."
Li also reiterated the stance of the communist authorities in Beijing regarding Taiwan, emphasizing strong opposition to the independence of the island, which the PRC considers part of its territory.
The deliberations of the NPC and the government's advisory body, the Chinese People's Political Consultative Conference, known as the Two Sessions, will last until March 11.
