Chinese economic officials are confident of meeting this year's growth target of around 5% by generating 12 million new jobs and promoting consumer spending. Despite not providing details on the spending or initiatives, they aim to meet the goals announced by Premier Li Keqiang by boosting incomes and innovation.
Global Implications of Reviving the Chinese Economy
The efforts to revive the Chinese economy have far-reaching consequences, as weak retail, auto, and housing sales have depressed import demand. As the largest export market for its Asian neighbors and a significant source of revenue for Western companies, a successful revival of the Chinese economy would positively impact globally.
"Many Policy Tools" in the Toolbox
According to the deputy chairman of the National Reform and Development Commission, Li Chunlin, "there are many policy tools in our toolbox." The NDRC's priority is to "release consumption potential" and promote an "innovation-driven development strategy." This aligns with the ruling party's plan to drive self-sustaining growth through consumer spending and establish China as a valuable technology creator.
Challenges in Achieving the Job Creation Target
Despite the job creation target being 12 million, up from last year's goal of 11 million, the global environment "is becoming more complex and severe," warns Li Chunlin, due to weak export demand and strained relations with trading partners. This will put additional pressure on Chinese export industries, increasing the importance of autonomous business activity within the country.
"Increase the Income of Urban and Rural Residents"
"Ability to consume comes from employment and income," says Li Chunlin, emphasizing the need for the government to increase the income of urban and rural residents. The ruling party has previously pushed for e-commerce and big companies to share more of their wealth with the public by raising wages and cutting charges for small vendors and entrepreneurs.
Relatively Conservative but Pragmatic Proposal
The growth target of 5% is the lowest on record except for 2020, and according to Nomura economists, "it is a relatively conservative but pragmatic proposal for delivering a healthy and organic economic recovery." However, the higher unemployment target might take more work to achieve, making job creation a work focus this year.