Sets a 2021 GDP growth target above 6%

BEIJING – China has set itself a growth target of more than 6% for 2021, Chinese Premier Li Keqiang announced at an annual parliamentary meeting on Friday – the country’s most important political event of the year .

Such growth would come out of a low base.

China announced 2.3% GDP growth last year – the only major economy to grow amid the coronavirus pandemic. The accuracy of the country’s official economic figures is often questioned.

Li announced the growth target in a government labor report presented at the opening ceremony of the National People’s Congress. The meeting is part of the annual Beijing “Two Sessions” parliamentary meeting, which sets national economic and political priorities for 2021.

The prime minister set an overall positive tone for China’s economic recovery from the pandemic, while noting areas of weakness such as ‘hurdles’ to consumer spending, tough conditions for small businesses and growing pressure to maintain stable employment.

For 2021, Li said China is targeting an urban unemployment rate of around 5.5% and targeting the creation of more than 11 million new urban jobs, the same as in 2019 and up from 9 million last year. .

China will also aim for an increase of about 3% in the consumer price index, a measure of inflation, Li said.

Strengthening the development of science and technology was among the main tasks of the year, Li said. He noted that “to prevent and defuse risks in the financial sector and other areas, we are faced with formidable tasks “.

Regarding international trade, Li said the country will “promote the growth of mutually beneficial China-US trade relations on the basis of equality and mutual respect.”

He did not give more details, but said China will work to speed up free trade negotiations with Japan and South Korea, and will actively consider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The CPTPP trade deal was previously known as the Trans-Pacific Partnership, which former President Donald Trump withdrew from the United States immediately after its inauguration in 2017. It is not yet clear whether President Joe’s administration Biden will push the United States to join the deal.

Tensions that have intensified between China and the United States in recent years have shifted from mere commerce to areas such as technology and the controversy over the origins of Covid-19.

In prepared remarks, Li said on Friday that there were still “weak ties” in China’s control of Covid-19, but the economy had recovered sufficiently.

Li said there were no plans for further bond issuance to combat the effects of the pandemic and the deficit-to-GDP ratio would be around 3.2%, below the target for more than 3.6% from last year.

He also reiterated existing commitments to allow more foreign investment in domestic industries.

The Chinese premier said the country will “strengthen military training and readiness” and improve defense-related technology.

In a separate report on Friday, China’s finance ministry said national defense spending would rise 6.8 percent to nearly 1.36 trillion yuan ($ 210.1 billion). This is slightly faster than the 6.6% increase last year.

Li said the country would “resolutely deter” any separatist activity aimed at Taiwan independence while remaining committed to peaceful reunification with the region, which Beijing regards as a separatist province.

He also said the central government “will improve the relevant systems and mechanisms” of the semi-autonomous regions of Hong Kong and Macao.

One of the items on the agenda for this year’s National People’s Congress is to consider a proposed change to Hong Kong’s electoral system. Senior officials have spoken publicly in recent weeks about how Hong Kong’s electoral system should be changed so that only central government supporters oversee the semi-autonomous region.

The annual meeting of the two sessions was oversaw changes such as President Xi Jinping’s abolition of term limits in 2018 and the proposed new security law for Hong Kong last year.

The otherwise generally symbolic gathering takes on special significance this year as it marks the start of China’s five-year development plan – the 14th such plan in the country’s history. It is also the 100th anniversary of the ruling Communist Party.

The political advisory body, the Chinese People’s Political Consultative Conference, held its opening ceremony on Thursday. The National People’s Congress legislature began its annual rally on Friday. Both meetings are expected to end at the end of next week.