Beijing always hopes to reach 5.5% growth, despite the war in Ukraine and a persistent Covid-19 epidemic.
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Due to COVID-19, for the third year in a row, it was videos that Prime Minister Li Keqiang held on Friday 11 March, the press conference that closes the annual session of the Chinese parliament. Sign that the epidemic is not completed in China, more than 1,000 positive cases have been identified the day before: 1 090 exactly. Never was the figure since Wuhan’s containment, in 2020. Friday, Changchun, a city of 9 million inhabitants, in the north of the country, even in turn confined.
Other major uncertainty, obviously, the “Ukrainian crisis”, as the Chinese say. Especially, “the sanctions that will harm the global economy and are in the interest of anyone,” said the Prime Minister, more prompt to criticize Westerners than Russia.
Nevertheless, Li Keqiang is convinced: China will be able to reach “about 5.5%” in 2022. One figure both low – never for thirty Beijing had set a goal so unbrevitious – but higher than the international business institutes are planned. In 2021, the Chinese government had shown very cautious and had only been on a growth of 6%, while it had finally reached 8.1%. This year, it’s the opposite. China decided to show the rest of the world that it remained relatively optimistic. For both political and economic reasons.
A kitty of nearly 200 billion euros
While the party holds its e Congress this fall, the state explicitly puts itself in order for it for this one to be a success. Its role is to “stabilize the macroeconomic situation, ensure that the economy works in reasonable margins and maintain the general stability of society. In short, do everything to inaugurate brilliantly on the 20 e Congress. Party, “said the Prime Minister on March 4, opening the parliamentary session. A “whatever it costs” to Chinese characteristics.
“The government will do everything to maintain economic stability and, as a result, politics”, explains Willy Lam, an expert from Jamestown Foundation. In particular by opening the credit valves large. In 2022, the amount of Beijing financial transfers at the local administrative levels will leap 18%. A record percentage, to reach the overall sum of 9,800 billion yuan (€ 1,410 billion). While state spending will increase by 3.9%, Li Keqiang plans to reduce the 2.8% deficit of gross domestic product (GDP), less than 2021, while reimbursing SMEs about 1,500. billions of yuan recipes from VAT.
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