China sets 'not overly ambitious' targets to recover economy after Covid downfall

China's goal for its GDP growth for this year left analysts disappointed after they expected the target to be far more than 5%, a figure that is not "overly ambitious" and is similar to that of last year's, which failed to reach its set target. Outgoing premier Li Keqiang opened the annual meeting of the National People’s Congress (NPC) by addressing the ruling party’s rubber-stamp parliament with a speech that touched upon economic targets, complicated foreign affairs and the downfall caused by the Covid-19 virus. 

As nearly 3,000 NPC delegates and President Xi Jinping keenly listened, Keqiang said that China was zeroing in on having a “full economic recovery” and building it back up after the turmoil that was caused due to the COVID-19 pandemic and the stringent zero-Covid policy. 

Keqiang commenced what might be his final speech as premier by stating that the virus impacted China “beyond our expectations," referring to the mere 3% GDP growth that the country experienced in 2022, which fell short of the government's 5.5% target. He declared that this year, the government aims to create 12 million urban job opportunities with a target of 5.5%.

What are the CCP's goals for this year? 

In a conversation with The Guardian, Prof Victor Shih at the University of California called the target “not overly ambitious” that would ensure the government and Keqiang's successor attain an “easy victory." “They don’t call for any massive stimulus, and that partly stems from a recognition that exports – a main engine of growth for China’s economy in the last three years – will likely not be so strong this coming year,” he said.

Apart from bouncing back from Covid woes, the "work report" speech emphasized the Chinese Communist party’s aim to annex Taiwan, boost the "birth support system," solve housing issues for younger adults, and enhance welfare for the elderly. But critics like Shih think the statements are bleak promises. “So a lot of this wording sounds to me like an empty promise in a sense, because it’s unclear where the money would come from unless growth miraculously comes in a way beyond expectations," he said.