Shiv Media: China aims for 5% economic growth, but faces challenges

China has officially announced its growth target of around 5% for the year, with a focus on prioritizing security and the economy. The government plans to maintain a pro-active fiscal policy and prudent monetary policy to ensure high-quality development. To support growth, China intends to issue 1 trillion yuan in ultralong special treasury bonds annually.

In the face of economic difficulties, support will be provided to local governments to boost their stability. Additionally, defense spending is set to increase by 7.2% to 1.67 trillion yuan this year. With a real estate market crisis looming, the government aims to raise consumer spending to drive the economy.

The Chinese economy grew at a rate of 5.2% in 2023, following slow growth in the previous year due to disruptions caused by COVID-19. Moving forward, the government is looking to improve policy handling to create a stable, transparent, and predictable policy environment. Measures will also be taken to defuse risks in the real estate market and manage local government debts.

A new development model for the housing market will be introduced, including the construction of government-subsidized housing. Additionally, a program for worry-free consumption will be implemented to encourage spending. Priority will be placed on employment, with the introduction of unemployment insurance and social support initiatives.

Despite challenges, China is urging greater confidence in its economic recovery and long-term growth prospects. Huizhong Wu and research assistants Yu Bing and Chen Wanqing contributed to the report.