Coronavirus: China pledges to hit 2020 targets despite economic impact of epidemic

China’s leaders say the coronavirus outbreak is a ‘temporary’ setback and the country’s social development targets for this year can be achieved

Beijing is intent on doubling the size of the economy in the decade to 2020, but supply chain disruptions and factory shutdowns threaten to throw growth of course

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Domestic and international travel restrictions, quarantine measures and coronavirus-related delays in production are taking a toll on China’s economy. Photo: SCMP

Published: 4:00pm, 24 Feb 2020Updated: 2:33pm, 16 Mar 2020

China has reaffirmed it can meet its economic and social development targets in 2020 despite the coronavirus epidemic, although it remains tight-lipped on what specifically those goals are.

China’s top leaders decided the country’s general economic plans for 2020 at the Central Economic Work Conference last December, before signing a phase one trade deal with the United States on January 15, and the outbreak of coronavirus, which has roiled supply chains and killed close to 2,500 people in the mainland.

The 2020 targets, including the gross domestic product (GDP) growth rate, as well as unemployment and inflation, were set to be unveiled at the National People’s Congress in March, but the annual parliamentary gathering has been postponed.

Chinese officials, including President Xi Jinping, have said Beijing would forge ahead with the goals, including building a “comprehensively well-off society”. To realise the vision, China must double its GDP this year from 2010, which economists have calculated would require a minimum 5.6 per cent growth rate.

“As [China is] the world’s second largest economy, the impact of the epidemic over the Chinese economy is temporary and short-term,” said Cong Liang, the general secretary of the National Development and Reform Commission in Beijing on Monday. “The goals and tasks of economic and social development in 2020 can be achieved.”

Cong said the outbreak had exposed weak links and shortcomings in many areas, but that China’s economy had shown “tremendous resilience and potential” as many sectors – including e-commerce, online education, remote offices, online entertainment and intelligent manufacturing – had grown during the public health crisis.

“This is not only a new opportunity to expand domestic demand and promote development, but also is a good time to cultivate and expand new economic growth points,” Cong said. “This is critical to lay a good foundation for the sustainable and healthy development of China’s future economic and social development.”