Amid escalating trade tensions with the US, China aims for a growth target of approximately 5%. Premier Li Qiang highlighted a significant increase in fiscal spending, raising the budget deficit to 4% to stimulate job creation and combat weak consumer demand. The government plans to generate around 12 million new jobs while striving for 2% inflation. Li acknowledged challenges from both external pressures and weak domestic demand, stressing the need for faster adjustments to invigorate the economy. This marks a pivot in strategy focusing on internal consumption as the primary growth engine.
"China has set an annual growth target of about 5 percent, promising to make domestic demand its main economic driver as an escalating trade war with the United States hit exports."
"Budget deficit ratio from 3 percent to 4 percent doesn't seem much, but that's the highest that has been set in three decades."
"Li in his 55-minute talk acknowledged both international and domestic challenges, asserting that the foundation for China's sustained economic recovery and growth is not strong enough."
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