China sets 5% GDP growth amid trade tensions and safety boost
Economic growth at the level of 5% GDP - Premier Li Qiang confirmed on Wednesday the Chinese government's target, despite growing trade tensions. In addition to an anticipated 7.2% annual increase in defence spending, Beijing will enhance public safety management due to rising crime rates.
The head of the government presented the goals for the current year and reported on the cabinet's work from 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, is not surprising to experts.
The Chinese economy officially grew by 5% in 2024, reaching the level set at last year's NPC session. This followed the implementation of extensive stimulus measures to address declining domestic consumption and serious concerns in the real estate market.
Li encouraged swifter 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, up to 5.66 trillion yuan (£607 billion) - 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 defence budget of the PRC will increase by 7.2% to about £190 billion, 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 modernise 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, emphasising 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 11th March.
