China thinks it would be difficult, but it has set a 5% growth objective

Beijing: Premier Li Qiang said on Tuesday that China hopes to increase its economy by 5% this year, but he acknowledged that this would be a tough objective to meet during hard times. Li presented his objectives to strengthen China’s military, assist the economy, and increase investment in cutting-edge technological development during his speech to the National People’s Congress.

However, there was no substantial stimulus package to comfort investors and strengthen markets.
According to Li, the government would stick to a “pro-active fiscal policy and prudent monetary policy,” implying that the leadership’s outlook on the economy won’t significantly alter. He announced a strategy to stimulate the economy through the issuance of long-term bonds spread over a number of years, beginning this year with 1 trillion yuan (about $139 billion). According to him, the funds will be used to strengthen security “in key areas” and carry out “major national strategies.”

“Achieving this year’s targets will not be easy,” Li said, alluding to the year’s economic growth as well as other objectives including income growth, the creation of 12 million jobs, and increased energy efficiency in the economy to help meet climate change targets. He did, however, restate the need for more confidence in the face of difficulties, pointing out the nation’s sizable workforce, sophisticated industrial capability, and expansive market of 1.4 billion people.