China has set this year's GDP growth target at around 5 percent, maintaining the same figure as last year, according to the government work report submitted Tuesday to the national legislature for deliberation.
While the target aligns with economists' expectations, some Western analysts describe it as \"ambitious.\" Bloomberg highlighted that matching last year's growth will be more challenging in 2024 due to the absence of a favorable pandemic low base. Factors such as a property crisis, deepening deflation, a stock market downturn, and increasing local government debt are putting pressure on the Chinese economy, which Reuters notes remains heavily reliant on credit-driven, state-led investment.
Despite these challenges, China is taking concrete measures to address structural constraints and is determined to achieve its 5 percent GDP growth target. The World Bank emphasizes that reducing economic imbalances requires shifting the economy's structure from manufacturing to high-value services and from investment to consumption. In response, China aims to foster new quality productive forces and expand domestic demand.
The government work report also outlines plans to enhance efforts in big data and launch an AI-plus initiative. \"We will fully leverage the strengths of the new system for mobilizing resources nationwide to raise China's capacity for innovation across the board,\" the report states. Chinese Minister of Science and Technology Yin Hejun announced that China's expenditure on research and experimental development activities reached 3.3 trillion yuan in 2023, marking an 8.1 percent increase over 2022.
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Shifting economic structure makes China's GDP growth target realistic
cgtn.com
