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China sets economic growth target of “6% or more” this year

Beijing — A year after China was hit by the coronavirus, the government promised a strong return to economic growth of “more than 6%” on Friday. This strongly shows that China is ready to do what it needs to do to maintain the world’s second-largest economy.

This effort is a positive sign for the global economy. It suggests that Beijing is ready to release money to boost the economy, rather than slowing down to cope with the ever-increasing debt flow. This means that the Chinese economy will continue to buy much of what the world makes, such as iron ore and computer chips.

China’s growth goals come from the fact that the virus has almost stopped within the border and that the number of cases has dropped sharply in recent weeks in countries such as the United States and India.

China’s goals for this year may be easily achieved. This is far below what many Western economists expect the Chinese economy to realize. While the service sector is recovering from last year’s very poor performance, they are forecasting an increase of about 8 percent as exports of manufactured goods continue to skyrocket.

China’s Prime Minister Li Keqiang announced his goals when he submitted a report on government activities to the National People’s Congress, a parliament., At the beginning of that week’s annual meeting.

“As the coronavirus continues to spread around the world, instability and uncertainty have increased in international affairs, and the global economy continues to face serious challenges,” said Lee.

“At home, our work to control Covid-19 still has a weak connection,” he added. “We need to further strengthen the foundations for achieving our economic recovery, leaving obstacles to consumer spending and unsustainable investment growth.”

China is predicted by the government due to pandemic uncertainty Abandon setting annual growth goals For the first time in decades.Finally, China recorded 2.3% growth By 2020, it will be by far the best performer in the major economies, much slower than the usual pace of more than 6% in recent years.

But last year’s growth in China was even more imbalanced than usual. In fact, the country has embarked on the goal of shifting from reliance on export and debt-fueled infrastructure investment to a more sustainable reliance on domestic consumption. Like most countries during the pandemic, travel and leisure spending plummeted in China last year.

Lee promised to step up efforts to increase consumption on Friday. “Focusing on improving people’s well-being, we increase demand and promote better coordination between consumption and investment,” he said.

He promised a tax cut for small businesses with many small shops in towns and villages. However, spending on infrastructure continues at a very fast pace.Lee announced only token cuts — 2.7 percent — This year’s special purpose bond issuance was primarily used to pay for infrastructure projects and has nearly tripled in the last two years.

China is seeking a stable relationship with the United States, but Lee suggested that Beijing is taking a tougher route in Hong Kong and Taiwan. This is two potential flash points with Washington.

“We are resolutely wary of and prevent external interference with the situation in Hong Kong,” said Lee.

Parliament is ready to deepen China’s crackdown in Hong Kong, National Security Law What Beijing imposed on the city last year.This year, the delegation Approve the proposal It will dramatically reduce democratic competition in the former British colonial local elections.

The Chinese government is also drawing increasingly strict lines against Taiwan, a democratically governed island that Beijing claims to be its territory, and Lee’s words looked harsher than previous work reports. .. Taiwan’s current president, Tsai Ing-wen, resisted Beijing’s request to accept the definition of mainland island status.

“We are very cautious and categorically discourage separatist activity for’Taiwan independence’,” said Lee.

China sets economic growth target of “6% or more” this year

Source link China sets economic growth target of “6% or more” this year

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