According to the country’s No. 2 leader, Premier Li Keqiang, the ruling Communist Party will target “around 5.5%” growth in this year. This is a decrease from last year’s 8.1% expansion. Premier Li Keqiang, the country’s No. 2 leader, stated in a report to its annual meeting of its ceremonial legislature. The report noted that commodity prices are rising but did not mention the reason: Beijing’s friend, Russian President Vladimir Putin.
Li spoke for 55 minutes during the opening of the National People’s Congress at the Great Hall of the People, central Beijing.
Rising energy costs as a result of the war are added to the pressure from anti-coronavirus control and a crackdown debt in China’s huge real estate industry. This caused economic growth to drop to 4% in the last quarter 2021, compared to a year earlier. The International Monetary Fund’s and private sector analysts’ growth projections for this year are as low at 4.3%.
Manufacturing has been affected by a “zero tolerance COVID-19 strategy which has sometimes suspended access to major cities. It has also caused weak demand for Chinese exports, shortages of power, and processor chips. Beijing has not indicated that it might change its anti-virus strategy, which has kept infection rates low but at an increasing cost.
The government of President Xi Jinping has attempted to distance itself from Putin’s war by calling to dialogue, but refused to condemn the attack. Beijing denounces Washington’s financial and trade sanctions against Moscow, and claims Washington is responsible for the conflict.
Li acknowledged indirectly the war’s effect on oil and wheat prices, but did not give any explanation.
Li stated that all of this makes our external environment more volatile, grave, and uncertain.
His report was focused on the economy and social welfare, and not on Tuesday’s State of the Union speech of President Joe Biden which highlighted Russia’s attack against Ukraine and international efforts in order to pressure Putin to cease.
The ruling party aims to guide the second-largest economy in the world towards slower, more self-sustaining growth that is based on consumer spending and not trade. However, it was alarmist by last year’s sudden slowdown.
This was due to tighter borrowing controls by real estate developers, which caused housing and construction sales to plummet.
The leaders of the Ruling Party announced a “policy pivot” in December to boost growth and shift away from long-term projects aimed at cutting carbon emissions and debt.
Li stated that economic stability must be our number one priority. Li stated that this should be “occupy an even greater position.”
Premier vowed to ensure food and energy security, with sufficient supplies of grain as well as electric power. He stated that Beijing would increase its exploration for oil, natural gas, and minerals and will improve its stockpiles and storage of essential raw materials.
Li also pledged to combat trafficking in women and children, and to protect their “lawful rights.” This is in response to the well-publicized case of a woman found chained in an eastern Chinese shed.
After the outbreak, much of the economy was closed down and the economy was unable to grow, no growth targets were set for 2020. The official target for 2020 is lower than 6%, which was the target last year.
For entrepreneurs who create wealth and jobs, the ruling party promises tax cuts. The government has told banks to lend more. Through higher spending on public works, the government is injecting more money into the economy.
The ruling party promises to increase the use of solar and wind power. It has also eased the pressure on utilities to reduce climate-changing carbon emissions through burning less coal.
Li stated that energy efficiency will be “assessed and given the appropriate flexibility.”
Li spoke out about COVID-19 and said China must “constantly refine epidemic control” but did not indicate Beijing would ease its “zero tolerance” strategy. He called for the acceleration of vaccine development and “strengthening epidemi controls” in cities that receive goods and travelers from abroad.
The face masks were worn by all the legislators who attended the opening session. Due to the pandemic, the normal meeting lasts for two weeks. This year, it was cut to one week.
The government also announced Saturday a 7.1% rise in its military budget compared to last year’s 6.8% increase. China holds the second highest military budget in the world, after the United States. It is also investing in long-range nuclear-capable missiles to increase its power beyond its borders.
Li reiterated the insistence of the ruling party that Hong Kong be “governed by patriots”, a key component in an effort to end pro-democracy activism from the former British colony.
The premier did not change his stance towards Taiwan, an island democracy Beijing claims as its territory. He has threatened to invade. Although the two sides were ruled independently after 1949’s civil war, they share multibillion-dollar trade ties and investment ties.
The invasion by Russia of Ukraine has led to suggestions thatBeijing may be more inclined to use force against Taiwan, if it perceives a lack in resolve from the United States and its allies. The ruling party has not changed its pledged approach to gaining Taiwan’s control by peaceful means without giving up on the military option.
Li stated that Beijing would “promote peaceful growth of relations across Taiwan Strait and the unification of China.” “We strongly oppose any separatist activities seeking Taiwan independence and we strongly oppose foreign interference.”
