The world’s second largest economy, People’s Republic of China, has now set its lowest growth rate target since 1990, estimated at 6.0% to 6.5%. Chinese Premier, Li Keqiang, has affirmed that the country needs to be prepared for a “tough struggle”
While addressing the National People’s Congress on Tuesday, Chinese Premier, Li Keqiang asserted, “We will face a graver and more complicated environment as well as risks and challenges.” He added, “We must be fully prepared for a tough struggle.” The statement came soon after the country revealed its lowest growth target in close to three decades, estimated at 6.0% to 6.5% in 2019.
In 2018, the world’s second largest economy managed a growth rate of 6.6%, lowest since 1990. China’s hampered economic growth has come amid ongoing US-China trade conflict, accompanied by the arrest of Huawei CFO, Meng Wanzhou and the diplomatic rifts that followed. While addressing the Chinese legislative authority, Premier Li Keqiang stated, “Downward pressure on the Chinese economy continues to increase, growth in consumption is slowing, and growth in effective investment lacks momentum. The real economy faces many difficulties.”
The Premier also acknowledged the 2018 health scandal, which unleashed protests across the nation against lack of proper health care and faulty vaccines. Other domestic hurdles included protests for pension and labour protests led by workers and students. A major concern in the country today is the rapidly rising rate of mass unemployment. Amid social unrest, Premier Li Keqiang has assured vocational training for rural migrant workers and high school graduates.
Addressing the various protests that broke out in the country last year, the Premier asserted, “There is still public dissatisfaction in many areas, such as education, healthcare, elderly care, housing, food and drug safety, and income distribution. Last year saw the occurrence of a number of public safety incidents and major workplace incidents. The lessons these incidents left us with should never be forgotten.”
The Premier has assured tax cuts in the manufacturing and transportation sectors. Further increasing funding for the private business sector, Premier Li Keqiang has pledged to increase state loans by 30% for small businesses.
The slowing economic growth has come ahead of the 70th anniversary of the People’s Republic of China, to be observed later this year.
