China sets ambitious economic target for 2024

Premier Li Qiang made the announcement at the opening of the annual National People’s Congress. It comes as China struggles to reinvigorate its once-booming economy. Mr Li acknowledged that China’s economic performance had faced “difficulties. Beijing says that last year the economy grew by 5.

2%, which even at that level is low for China. Research will be stepped up in new technologies, including artificial intelligence (AI) and life sciences. Beijing also aims to add 12 million jobs in urban areas. Some critics argue the real figure could be less than a third of that.

Andrew Collier Managing Director from China research firm Orient Capital Research said the next five or 10 years is going to be difficult. The idea of 5. 2% or 5. 5% growth is much likely wrong, he adds.

Consumer prices in China fell in January at the fastest pace in almost 15 years. China is one of the few major economies to avoid high inflation. The country’s housing market has been hit by a series of problems. The housing market accounts for around 20% of the country’s economy.

It was the sharpest drop since September 2009, when the world was still reeling from the global financial crisis. Deflation is bad for economies as it can mean people keep putting off buying big ticket items. It also has an impact on people and businesses with debts. For a company with falling revenue, or a household with declining income, debt payments become more of a burden.

Authorities have been scrambling to reassure investors and consumers. The head of China’s stock market regulator was replaced earlier this month. Officials have also moved to clamp down on traders betting against shares in Chinese companies. Beyond these immediate issues China also faces a number of more far-reaching challenges.

Taiwan is a key flashpoint in the tussle between China and the US for supremacy in Asia. Taiwan sees itself as distinct from the Chinese mainland. But Taiwan is seen as a key part of the US-China alliance in the region. It is also a key source of tension between the US and China.

There is also the ongoing trade dispute with the US, which started in 2018 under then-president Donald Trump. A potential second term in office for Mr Trump could well see tensions ramp up between Washington and Beijing. Most of this negative news has already been factored in to share valuations, says Ms Yeung. The world’s 1.

4 billion people are unlikely to enjoy a return to double digit annual growth, anytime soon. What is clear though is that its more than 1. 3 billion people will not be able to enjoy the prosperity that comes with it, soon. The world’s economy is expected to grow at a rate of just 1.

5 per cent over the next five years.

Read More