Chinese Premier Li Qiang presented a report on government work on behalf of the State Council at the opening session of the second session of the 14th National People's Congress held at the Great Hall of the People on Tuesday. According to the report, China is aiming for economic growth of around 5 percent in 2024.
While this may seem modest compared to the growth rates of the 1990s and 2000s, the sheer size of the increase is significant given the current economic climate. Still, it is an achievable goal. Although 2024 faces external and internal challenges, it will continue to provide much hope for the Chinese economy.
The government's work report emphasizes the importance of ensuring stability in areas such as consumption, employment and local debt.
To boost consumption and drive the transition to a more consumer-oriented economy, the government is committed to supporting key economic sectors by maintaining necessary fiscal spending. The Ministry of Commerce also announced measures to promote further opening-up and reforms, declaring 2024 the “Year of Boosting Consumption” and emphasizing the need to revive demand and attract more investment.
Employment is also a top priority. As part of an employment-first strategy, China has taken important steps to stabilize and strengthen employment opportunities. A total of 12.44 million jobs were created in urban areas in 2023, with around 33.97 million people being lifted out of poverty and securing new job opportunities last year. In the future, the country will place an even greater emphasis on employment and take measures to increase the effectiveness of employment promotion policies.
With an aging population and high levels of debt, local government debt remains a concern for economic stability. In the next few years, the government aims to adequately refinance existing debt and promote stability by using policy tools such as additional issuance of government bonds, local government bonds and special local government bonds.
Furthermore, China is undergoing economic transition and needs to look for new sources of growth. Technological innovations and the rise of new industries will play a crucial role in driving future economic expansion. China has seen rapid progress in sectors such as electric vehicles, battery technology and solar energy. To maintain economic growth, China must continue to expand and improve its technological innovations.
The transition from a traditional to digital economy is crucial to China's new era of development and has potential global implications. Accelerating advances in artificial intelligence, robotics, automation, blockchain and advanced manufacturing will contribute to gradual economic growth.
These measures, coupled with the establishment of a “single national market” initiative, have the potential, if implemented effectively, to create additional scope for China's economic growth.
The emergence of new high-quality productive forces will give new impetus to China's economic recovery, increase the country's resilience to external risks and strengthen its core competitiveness on the global stage.
China has played this role for an extended period of time, and despite many challenges it faces, it is reasonable to expect that China will continue to play this key role in 2024.
From our partner CGTN
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