President Xi vows to boost manufacturing as China targets 5% growth
by AFP Staff Writers
Beijing (AFP) March 6, 2023

President Xi Jinping vowed to boost the country's manufacturing capacity and not rely on overseas markets, state media reported Monday.

Speaking at the annual gathering of the rubber-stamp parliament in Beijing on Sunday, Xi said China should be able to fend for itself.

"I've always said there are two critical areas for China: one is to safeguard our rice bowl, and the other is to build up a strong manufacturing sector," Xi said, according to the state-run People's Daily.

"As a great nation of 1.4 billion people, we must rely on ourselves," Xi added. "We can't depend on international markets to save us."

The comments, during a meeting with delegates representing China's economically advanced Jiangsu province, belie concerns in Beijing over an increasingly hostile international environment and lagging growth at home.

As China's technology ambitions have been hit with a raft of restrictions by the United States and its Western allies, Beijing has doubled down on the need to build a self-reliant industry and shift away from imports for sectors perceived as vital to national security, such as semiconductors and artificial intelligence.

Washington has in recent months tightened sanctions on Chinese chipmakers, citing national security concerns and the ability for the technology to be used by China's military.

The highly choreographed National Party Congress (NPC) kicked off with outgoing Premier Li Keqiang announcing an increase in military spending and modest economic growth.

The 2023 GDP growth goal of "about five percent" fell slightly short of market expectations and comes as Chinese authorities are grappling with how to stem the recent reorientation of global manufacturing chains to countries such as India and Vietnam.

Xi, who will start his third presidential term after securing a precedent-breaking third stint as party chairman last October, spoke during the Sunday meeting about the need to ensure high-quality manufacturing that is "innovative, coordinated, green, open and shared".

China's state news agency Xinhua published other comments from Xi saying that development in these key areas will propel China forward in its bid to become a "great modern socialist country in all respects".

China sets economic growth target of 'around 5%' for 2023
Beijing (AFP) March 5, 2023 - China on Sunday set an economic growth target of "around 5 percent" for 2023, one of the lowest in decades, as its annual National People's Congress opened in Beijing.

The target was announced in a work report delivered by outgoing Premier Li Keqiang as the rubber-stamp parliament opened at the capital's Great Hall of the People.

The figure was slightly lower than the average of forecasts of economists surveyed by AFP, who predicted a goal of around 5.3 percent.

Li said China would aim to add "around 12 million new urban jobs" this year and bring the urban unemployment rate to around 5.5 percent.

He said Beijing would also target a rise in the consumer price index of around three percent.

"China's economy is staging a steady recovery and demonstrating vast potential and momentum for further growth," said Li in an hour-long speech punctuated by ripples of applause from thousands of delegates.

But he warned that "uncertainties in the external environment are on the rise", noting high global inflation.

Li also said "external attempts to suppress and contain China are escalating".

China posted just three percent growth last year, missing its stated target of around 5.5 percent by a wide margin as the economy strained under the impact of strict Covid-19 containment policies and a property crisis.

Li said Beijing "should give priority to the recovery and expansion of consumption" and "place a higher priority on promoting the employment of young people, particularly college graduates".

But he was bullish on the slowdown, saying that "under the strong leadership of the Party Central Committee, we carried out Covid-19 response and pursued economic and social development in an effective and well-coordinated way".

"Overcoming great difficulties and challenges, we succeeded in maintaining overall stable economic performance," he said.

"Such achievements are a testament to the tremendous resilience of China's economy."

Zhiwei Zhang from Pinpoint Asset Management said: "The growth target came in at the low end of the market expectation.

"But it should be taken as a floor of growth the government is willing to tolerate. Indeed given the very low base of economic activities last year, it is unlikely to see growth drop below 5 percent."

Related Links
Global Trade News