China has unveiled its 2024 government work report, highlighting a strategic focus on supporting and stabilizing the economy while aiming for high-quality growth. Despite facing challenges such as a depressed property market, deflationary pressures, and geopolitical tensions, the report sets a confident GDP growth target of around 5 percent.
Key achievements from 2023 include the creation of over 12 million urban jobs, the installation of more than half of the world's new renewable power capacity, and new energy vehicle sales accounting for over 60 percent of global totals. Additionally, China's 5G penetration exceeded 50 percent, urbanization reached 66.2 percent, and per capita disposable incomes saw significant increases.
Looking ahead, the 2024 plan emphasizes four main areas:
- Macroeconomics and Finance: The deficit-to-GDP ratio is set to decrease to 3 percent from 3.8 percent last year. New financing vehicles, including ultra-long special treasury bonds and special-purpose bonds for local governments, will be introduced to manage the rising debt-to-GDP ratio.
- Economic Stimulus: Instead of massive stimulus, China will expand domestic demand through targeted measures such as supporting the trade-in of old consumer goods and fostering new consumption growth areas like smart homes and entertainment. Central government investment is slated at 700 billion yuan, with initiatives encouraging private capital in major projects.
- New Quality Productive Forces: Artificial intelligence takes center stage with the launch of the \"AI Plus initiative.\" Emphasis on disruptive technologies such as quantum computing and life sciences will drive innovation. Renewable energy advancements continue, aligning with President Xi Jinping's commitment to sustainable development.
- Enhancing Opening-Up: Higher-standard opening up and national treatment for foreign-funded enterprises are prioritized. Efforts to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership signal a transformative economic and geopolitical strategy.
The report underscores the high priority of science, technology, and innovation in driving new quality productive forces. Minister of Science and Technology Yin Hejun highlighted significant R&D investments and breakthroughs, including the world's first fourth-generation nuclear power plant and the commercial operations of the C919 large aircraft. Exports of new energy vehicles, lithium batteries, and photovoltaic modules surged by nearly 30 percent in 2023, showcasing China's commitment to enhancing both traditional and emerging industries.
As China navigates complex economic landscapes, the 2024 government work report reflects a balanced approach, prioritizing long-term stability and sustainable growth through innovation and strategic investments.
Reference(s):
2024 Government work report: Support, stabilize, solidify the economy
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