China has set its GDP growth target for this year at around 5 percent, according to the government work report submitted on Tuesday to the national legislature.
While some Western analysts describe the target as “ambitious” due to challenges such as a property crisis, deflation, stock market fluctuations, and mounting local government debt, China’s strategic economic shift aims to make this goal realistic.
China acknowledges that high-speed growth based on investment and low-cost manufacturing can lead to imbalances. To address this, the country is implementing measures to tackle structural constraints by focusing on innovation, high-value services, and boosting domestic consumption.
Reducing economic imbalances requires shifting the economy from manufacturing to high-value services and from investment to consumption. In line with this, China is determined to foster new quality productive forces and expand its domestic demand.
According to the government work report, China will 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 stated.
China’s expenditure on research and experimental development activities reached 3.3 trillion yuan in 2023, up by 8.1 percent over 2022, said Chinese Minister of Science and Technology Yin Hejun on the sidelines of the two sessions on Tuesday.
Reference(s):
Shifting economic structure makes China's GDP growth target realistic
cgtn.com
