The world has once again turned its eyes to Beijing as China announced its target economic growth rate of around 5 % in 2025 at the opening session of the third session of the 14th National People's Congress (NPC), China's national legislature, on Wednesday.
On a global scale, a growth rate of around five per cent would put China among the fastest growing major economies in the world, with economic growth equivalent to the annual output of a medium-sized country.
Justin Lin Yifu, dean of the Institute of New Structural Economics at Peking University, stressed that China's stable and dynamic economic growth in 2025 is a certainty regardless of global uncertainty.
Lin, a former senior vice president and chief economist at the World Bank, believes China's gross domestic product (GDP) will grow at a rate of at least 5 %, maintaining its position as a key driver of global growth as it will contribute more than 30 % to global expansion.
"This is good news - not only for China, but for the whole world," he added.
The government work report, which was submitted to the national legislature for consideration on Wednesday, expresses China's willingness to work with other members of the international community to promote an equal and orderly multipolar world and universally beneficial and inclusive economic globalisation.
"We will continue to firmly pursue a mutually beneficial strategy of opening up, to oppose hegemonism and power politics, to oppose unilateralism and protectionism in all forms, and to promote international justice and fairness," the report affirmed.
Deficit-to-GDP ratio at 4 %
The report notes that China has adopted a more active fiscal policy and is pursuing a reasonably easy monetary policy. China's deficit-to-GDP ratio is thus set at around 4 % for this year, one percentage point higher than last year.
Tian Yun, an economist in Beijing, noted that this is the first time in history that China has set the deficit-to-GDP ratio at 4 %.
According to Tian, this sends several signals of increased efforts by Chinese policymakers to manage the challenges and promote quality economic development. It also indicates that fiscal spending will play a much stronger role in promoting economic growth and that the efficiency of fiscal spending utilization should be higher this year, he added.
Strengthening social vitality
The report calls for stimulating the vitality of the whole society and promises that China will consistently implement the strategy of expanding domestic demand, strengthening the domestic economy, promoting its expansion and expanding international cooperation through further opening up.
To meet this target, China will issue a total of 1.3 trillion yuan (about $182 billion) of ultra-long special government bonds in 2025, up 300 billion yuan from last year, and allocate 735 billion yuan from the central government's budget for investment in 2025.
The report highlighted China's commitments to expanding above-standard opening-up, stabilizing foreign trade and investment, and promoting a first-class business environment.
Since last year, China has fully implemented the negative list for cross-border trade in services, started opening up processes for value-added telecommunications services, biotechnology and 100% foreign-owned hospitals, and granted all LDCs with which it has diplomatic relations zero tariff treatment for 100 % tariff lines.
Development based on innovation
Wednesday's report says the country will insist on innovation-driven development, and commits to developing technological self-sufficiency, accelerating major scientific projects and building an environment for innovation.
Enterprises like Xiaomi have deeply understood the importance of innovation and cutting-edge development. Speaking in the deputy corridor before the opening of the NPC meeting, Lei Jun, founder and CEO of Xiaomi and also a deputy of the NPC, said that Xiaomi's major achievements are underpinned by its innovation strategy.
Lei said Xiaomi has maintained its position among the world's top three smartphone manufacturers for 18 consecutive quarters, which also reflects the growing global recognition of Chinese technology products and brands.
China will reform research institutes, strengthen cooperation between industry and academia, give enterprises a greater role in innovation and create a top talent pool to support young scientists, the report said.
CMG / gnews.cz
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