China is trying to reverse the recession, lowering its economic growth target

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Beijing (AP) — China’s annual economic growth target on Saturday as Russia’s war in Ukraine raises oil prices and disrupts the global economy, while Beijing struggles to reverse the recession. Has been reduced to the lowest level in decades.

The ruling Communist Party is aiming for growth of “about 5.5%” this year, up from 8.1% last year, said Prime Minister Li Keqiang, the country’s second-largest leader, in a statement at the parliamentary annual meeting. .. He said commodity prices were rising, but did not mention why: an attack on Beijing’s friend Vladimir Putin of Russia.

“It will take a lot of effort to reach this goal,” Lee said in a 55-minute speech at the opening ceremony of the National People’s Congress at the Great Hall of the People in central Beijing.

Soaring energy costs from the war have spurred pressure from coronavirus regulation and the crackdown on debt to China’s huge real estate industry, which slowed economic growth in the fourth quarter of 2021 to 4% year-on-year. Analysts on the International Monetary Fund’s growth forecast for this year are only 4.3%.

Production was suspended due to a “zero tolerance” COVID-19 policy that temporarily suspended access to some major cities, low demand for China’s exports, and a shortage of energy and processor chips. The prime minister did not suggest that Beijing could ease its antivirus strategy. This helped keep the number of infections low, but at a higher cost.

President Xi Jinping’s government tried to stay away from Putin’s war by calling for dialogue, but refused to criticize the attack. Beijing accused Washington of being responsible for the conflict and blamed trade and economic sanctions on Moscow.

Lee indirectly acknowledged the impact of the war on oil, wheat and other commodity prices and said it was “high and volatile,” but did not give a reason.

“All of this makes our external environment increasingly unstable, serious and uncertain,” Lee said.

His report, unlike President Joe Biden’s State of the Union address on Tuesday, focused on economic, social and other domestic issues.

The ruling party is trying to turn the world’s second-largest economy toward slowing growth and independence based on personal consumption rather than trade and investment, but warned of the sharp slowdown last year.

This decline was caused by tighter restrictions on real estate developers’ borrowing, leading to sluggish construction and home sales.

Political party leaders responded by announcing a “policy shift” in December to support growth and break away from long-term debt and carbon reduction initiatives.

“Economic stability must be a top priority,” Lee said. “We should occupy a higher position.”

The Prime Minister has promised to ensure “food and energy safety” through the proper supply of grain and electricity. He said Beijing will step up exploration of oil, gas and minerals and improve the storage system for key commodities.

Lee also promised to crack down on trafficking in women and children and protect their “legitimate rights.” The status of abused women and possible additional protection will be discussed by lawmakers following a widespread case of women found chained in huts in eastern China.

Growth targets for 2020 have not been announced after much of the economy has been shut down to fight the virus. Last year’s goal was “more than 6%”. This year’s official target is below 6% for the first time since the 1990s.

The ruling party has promised tax cuts to entrepreneurs who create jobs and wealth. The bank was asked to lend more. The government injects money into the economy by spending more on building public works.

The ruling party has promised to build more solar, wind and other renewable energy sources. However, it also eased pressure on utilities to curb the increase in CO2 emissions that adversely affect the climate by burning less coal.

Energy efficiency is “valued for reasonable flexibility,” Lee said.

Regarding COVID-19, Prime Minister Lee said China needed to “continuously improve epidemic containment,” but did not suggest that Beijing could ease its “zero tolerance” policy. He called for accelerating vaccine development and “expanding” disease management in cities where travelers and goods arrive from abroad.

All representatives attending the parliamentary opening session wore face masks. Meetings that normally last two weeks have been shortened to one week again this year due to a pandemic.

Also on Saturday, the government announced a 7.1% increase in its military budget compared to last year’s 6.8% increase. China has the world’s second-largest military budget after the United States, investing in long-range nuclear-capable missiles and other weapons to extend its power beyond the coast.

Lee reiterated the ruling party’s claim that it must be governed by patriots, an important part of the campaign to curb the democratic movement in the former British colonies.

The prime minister claimed Beijing as part of his territory and did not imply a change in his position on the island’s democracy, Taiwan, which threatened the invasion. Since the division in 1949 after the civil war, the two have been governed separately, but have maintained a multi-billion dollar trade-investment relationship.

Russia’s invasion of Ukraine has led to a proposal that Beijing is likely to use force against Taiwan if it detects a lack of determination on the part of the United States and its allies. The ruling party has shown no signs of changing its stated approach of seizing control of Taiwan by peaceful means without abandoning its military options.

Beijing “will promote peaceful growth of cross-strait relations and unification of China,” he said. “We strongly oppose separatist activities aimed at” Taiwan independence “and foreign intervention.”

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Contributed by AP researcher Henry Hou.

https://www.wavy.com/news/world/china-cuts-economic-growth-goal-as-it-tries-to-reverse-slump/ Economic growth as China is trying to reverse the economic stagnation We are lowering our goal – WAVY. com com

This article will be automatically translated from your original language to your language. Please feel free to let us know if any translation errors are included so that we can fix them as soon as possible.