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China announced the ambitious goal of GDP growth “About 5 percent” for 2025, despite slowing down the domestic economy and tension in trade tensions with the USA.
The picture that has been awarded to Beijing’s goals in the previous two years in the previous two years, was announced in the Government’s annual “work report”, a review of his achievements last year and economic goals and policies for 2025.
The number of growth, which was in line with market expectations, signaled the determination of Beijing to maintain growth despite renewed trade hostilities with the USA, which are imposed additional tariffs On China this week.
However, some analysts said that the fiscal consumption measures announced in the report lacked market expectations, as the crisis of property assets continues to weigh at domestic consumption.
Premier li qiang, ChinaThe number two clerk stated a report on Wednesday before thousands of delegates gathered in the grand hall of Beijing at the annual session of the National Congress of the People, the Chinese Parliament of the Rubber Seal.
The 5 percent goal needed “to stabilize employment, prevent risks and improve the benefits of people”, as well as fulfilling “of the goals of long -term development”, said if it was.
The Hong Kong Hang Seng China Enterprises index rose as much as 2.6 on Wednesday after the operation of the work report released, while the Chinese CSI 300 index in Shanghai and Shenzhen rose to as much as 0.4 percent.
LI set a target budget deficit of 4 percent of GDP, compared to 3 percent in previous years and the highest number in recent decades. In order to encourage the economy, the report on the work says that the Government “will adopt a more proactive fiscal policy.”
Xin-Yao, director of the investment of Asian shares in Aberdeen, said that the Government was obviously dedicated to strengthening the domestic economy, but “the most important part is that they award consumption.”
The work report also targets 2 percent inflation for 2025, which is less than 3 percent and the lowest number of such figures since 2003, the recognition of the country Deep deflation pressures.
“The goal of a 5 percent growth makes aspiration, not a serious goal of politics,” said Eswar Prasad, economist and Chinese expert at Cornell University.
“China needs a package of carefully targeted fiscal and monetary policy measures, but they must be accompanied by reform measures to strengthen productivity and divert the government’s attitude towards a private company.”
Some analysts have said that specific fiscal stimuli measures, such as RMB300 ml. Widespread goods tradeThey were not as big as expected.
Beijing was also announced by RMB4.4TN in special bonds of local infrastructure administration and other investments and RMB1.3tn in the special bonds of the Central Government, both slightly less than provided, said Hui Shan, Chinese economist for Goldman Sachs.
“Fiscal numbers are disappointing,” Shan said, but added that the government could increase or accelerate the issuance of bonds later this year. In order to hit the goal of GDP growth, export should “surprise upside down,” she said.
The US has been imposed on Chinese exports by an additional 20 percent of tariffs since President Donald Trump assumed his post in January and threatened further measures.
China has been avenged this week by aiming for American agricultural and energy exports, as well as imposing export controls and security measures for US companies.
Beijing also announced a nominal increase of 7.2 percent in its 2025 defense budget. At 1.78tn RMB, in accordance with the average increase in the last decade, but surpassing the total increase in the Central State cost by 6.9 percent.
Analysts said that the total military consumption of China is likely to be much higher than registered. The latest annual Pentagon report states that Beijing spent “40 to 90 percent more than announced in his public defense budget”, although the estimates of Western experts are about 30 percent.
Taylor Fravel, Head of the Massachusetts Institute of Technology Program, said that the expansion of the liberation army of the National Army Arsenal, which has been in the course of three decades, is probably still the burden of costs, noting that “maintenance costs” have been persistent over several decades. “
Additional Wenjie Ding reporting in Beijing
