Editorial | Li Keqiang’s work report is a balanced blueprint to take the country forward
- China will still have the world’s largest consumer market, a supply chain able to sustain a strong manufacturing sector, some breakthroughs in science and technology despite containment measures from the US, and the supporting pillar of a vibrant economy
China has moved a step closer to transition to a new leadership. Premier Li Keqiang, the most senior figure who will step aside in the coming days, yesterday delivered his last work report to the annual legislative session of the National People’s Congress. His global audience focused on the nation’s headline economic growth target for this year. But the economic outlook after China’s emergence from its zero-Covid pandemic regime dominated his speech.
China has set a post-Covid economic growth target of 5 per cent, compared with last year’s actual growth of 3 per cent. It reflects realism and caution, in the face of expectations China is capable of more than 5 per cent – even 6 per cent. After all, the economy is in recovery mode, led by good manufacturing indicators.
An achievable pace of recovery
By setting the target at around 5 per cent, Beijing is aiming at an achievable pace of recovery, given that it is going to be drawn out and that sustainability and stability are key. By resisting an aggressive target it has left room for necessary reform and timely control of risks, spelled out abundantly in the work report.
So any notion that the Communist Party would be tempted to forsake prudence and push for short-term growth to mark the first year of President Xi Jinping’s third term of office has proved unfounded.
The strategy is very much about emphasis on fiscal discipline and sustainability. Evidence of that is to be found in government spending, with the debt-to-GDP ratio set at 3 per cent, moderate and prudent compared with the upper range not ruled out by some investment houses and economists.