The new Chinese premier, Li Qiang, admitted on Monday that it will be difficult for China to reach the official economic growth target of “around 5%” this year, one of the lowest in decades.
“I am afraid that reaching the growth target of around 5% will not be easy and will require a lot of effort,” Li said at the first press conference after being appointed prime minister, during the plenary session of the National People’s Congress, the highest body. Chinese legislature.
The goal set by Beijing for this year, which would be the envy of most developed economies, is, however, one of the weakest in the last 40 years for the Asian country.
Li Qiang, responsible for economic affairs, warned of “new challenges” for growth, while downplaying the importance of the Gross Domestic Product (GDP) in the daily life of the population.
The Chinese economy grew 3% in 2022, far from the initial target of 5.5%, as the Covid-19 ‘zero cases’ strategy and a liquidity crisis in the real estate sector weighed on economic activity.
The ‘zero covid’ policy was finally removed in December.
But growth in China continues to be penalized by the crisis in the real estate sector, a sector that, together with construction, accounts for more than a quarter of the country’s GDP.
Li Qiang also denounced Washington’s “siege” and “repression” of Beijing, in a context of deteriorating relations between the two powers.
“China and the United States can and should cooperate. If we cooperate, we can achieve great things,” Li said.
The two countries are locked in a battle for dominance of the industries of the future.
In the name of national security, Washington has restricted the supply of semiconductor chips to China, essential components in high-tech manufacturing.
The two powers also have disputes over issues such as Taiwan, human rights, trade or the status of Hong Kong.
Source: TSF
