China’s government has set a GDP target of around 5.5 % for 2022, one of its lowest goals in decades, as the world’s second largest economy faces Covid-19 cluster outbreaks, property market concerns and worries over Russia’s Ukraine invasion that’s expected to exert downward pressure on the global economy.
Premier Li Keqiang announced the target in a speech to open China’s annual legislative session at the Great Hall of the People on Saturday, saying “…our country will encounter many more risks and challenges, and we must keep pushing to overcome them” as he presented the government’s work report for the year.
A Chinese finance ministry report, released on Saturday, pegged China’s defence budget for 2022 at 1.45 trillion yuan ($230 billion), a 7.1% year-on-year increase.
It is for the second time that China’s official defence outlay has crossed the $200 billion mark, the first being in 2021.
It’s also the highest rise since 2019, when defence spending grew by 7.5%.
The work report, released by Premier Li, set a bunch of economic and social development goals for 2022, which included creating more than 11 million new jobs and keeping Consumer Price Index growth at around 3 %.
Economic stability must be a “top priority”, Li added.
The GDP target was based on the need to maintain stable employment, basic living needs and “guard against risks”, Li told the nearly 3,000 deputies at the opening session of the National People’s Congress (NPC), China’s legislature.
China’s annual growth target is closely watched and scrutinised given that the ruling Communist Party of China’s (CPC) legitimacy, observers say, is based on delivering steady economic expansion and improved standards of living for the 1.4 billion people in the country.
Speaking on China’s defence outlay, Li said: “We will move faster to modernise the military’s logistics and asset management systems, and build a modern weaponry and equipment management system.”