China spent its economic development goals and 2025 on Wednesday.
Here are the five major takeaets:
Economic boost
China has set an economic growth target of about five percent for 2025, roughly in line with the expectations of analysts.
Beijing has struggled to maintain its recovery from epidemic, with the crisis of a property sector, weighing consumption and high youth unemployment on development.
In his speech for MPs, Premier Lee Kiang vowed demanding “main engine and anchor” of economic development in the country, but accepted challenges in consumption.
“Domesticly, the foundation of China’s continuous economic reform and development is not sufficiently strong,” Lee told the ruling party cadres including President Xi Jinping.
“Effective demand is weak, and consumption, in particular, is dull,” he said.
He announced that China would aim to create some 12 million new jobs in cities and push for two percent inflation this year.
The country will also release 1.3 trillion yuan ($ 179 billion) in Ultra-Long Special Treasury Bond this year, growth from a trillion yuan in 2024.
And Beijing will increase its budget deficit to about four percent of its GDP – a rare steps that analysts will give Beijing more latitude to deal with their economic recession.
military spending
According to the budget report, China will increase its defense spending 7.2 percent in 2025, which is the same as last year.
Beijing’s military expenses have been increasing for decades, roughly in line with economic growth, as its armed forces undergo rapid modernization in front of the United States to deepen strategic competition with the United States.
In the detail of China, the defense budget has been seen with doubts by regional powers such as Washington and Japan, with which it has a regional dispute in the East China Sea.
Beijing has claimed its claims in the South China Sea, despite an international decision, declared its stance baseless.
Ageing Population
The budget report states that China will increase the minimum basic basic age benefits for rural and non-work urban residents by 20 yuan ($ 2.75) per month per month.
Basic pension benefits for retired people will also be taken as “appropriate” and elderly care services, especially in more rural areas, will be developed.
China’s rapidly growing population has made fresh challenges to the authorities, who have long been dependent on their vast workforce as the driver of economic growth.
Lee said, “Government” will gradually pursue improving “to increase the age of statutory retirement.”
China announced in September that it would gradually increase the age of statutory retirement, which was the lowest in the world at the age of 60.
The country will release childcare subsidy and “slowly” will release preschool education, Lee said.
High cost – especially for education and childcare – and challenging employment markets are among the factors who discourage young people from becoming parents.
Private enterprise
In addition, Lee gave strong support for private enterprises.
“We will take concrete steps to implement policies and measures designed to increase private sector development, effectively protect the valid rights and interests of private enterprises and entrepreneurs,” Lee said.
After Xi’s recent talks with Chinese tech tycoon, investors are monitoring further support for the private sector.
Lee said on Wednesday that China would “encourage private enterprises with appropriate terms for the institute and refine modern corporate systems with specific Chinese characteristics”.
But analysts say that a private sector boom will only be encouraged as long as it aligns with strategic purposes of Beijing.
Tech giants were allowed to grow rapidly during the 2010s, but the Communist Party has historically been careful in the expansion of the private sector.
‘external environment’
Lee admitted that “rapidly complex and severe external environment” could have more impact on China in areas such as trade and technology.
He said, “Unilateralism and protectionism is increasing, the multilateral trading system is experiencing disruption, and tariffs continue to grow obstacles,” he said.
China “will oppose the politics of hegmanism and power”, Lee said, without mentioning any country by name.
In recent years, China has clashed with the United States and other Western powers on technology, trade, human rights and other issues.
Its Foreign Ministry has previously used such a language in response to acts by Washington that China is a hindrance to its development.
(This story is not edited by NDTV employees and auto-generated from a syndicated feed.)
