The Chinese government has agreed to the country to a further slowdown of economic growth. As Prime Minister Li Keqiang announced at the opening of the annual session of the national people’s Congress, is to grow the economy this year, with 6.0 to 6.5 percent, noticeably slower than in the past. “The downward pressure on the Chinese economy continues to grow,” he warned in his accountability report before the close to 3,000 delegates in Beijing. The consumption is growing more slowly, the investments of the momentum is missing.
For the second largest economy in the world, these Figures represent the lowest growth since 1990. Last year, the growth had amounted, according to official figures 6.6 per cent – already at that time, the lowest figure for almost three decades. China needs to prepare themselves economically for a “tough battle,” said Li in his speech. The economic development will be influenced by a “more challenging and more complex environment,” and an increasing number of larger “risks and challenges”.
taxes have to be lowered
Li also mentioned the dissatisfaction of the people, where it has been possible to observe increasing complaints about the poor educational and health system, about the precarious old care, Drug and food safety, as well as unequal income distribution and an unfair housing market. “We must maintain the right Balance between maintaining stable growth, and the protection against risks, to ensure sustainable, healthy economic development,” said the Premier.
As a counter-measures Li announced billion in relief for businesses and consumers. As taxes – the VAT and social security contributions in order to two trillion Yuan (260 billion Euro) is reduced. Plans are also in higher investments in infrastructure, as well as the facilitation of lending to small and medium-sized companies. China’s fiscal policy will be “more energetic,” promised Li.
With a view to China’s international trading partners, he promised improved market access. The goal is a fair and impartial market environment in which Chinese and foreign companies be treated equally and in a fair competition with each other. Foreign companies should be able to do in more areas of the business, the financial market will open further. The “negative list” of sectors in which foreign companies cannot invest, will be shortened. China wants to keep more closely to internationally accepted trade rules, and promised to Li.
Without mention of the trade conflict with the United States explicitly warned Li in his accountability report before the uncertainties in the world economy. “The growth of the global economy is slowing down, and protectionism and unilateralism to take,” he said. “There are drastic fluctuations in raw material prices on the world market.” So China’s economy is faced with many challenges. “Only vigilance for hazards to ensure safety.”
military budget is rising again,
it is Remarkable, that despite this rather pessimistic economic data, the military expenditure of the country, with 7.5 percent more are expected to rise as total spending, with 6.5 percent. China will strengthen its armed forces and the “Training under combat conditions” improve, stressed Li. The “sovereignty, security and development interests” of the country would have to be protected.
In the past year, the defense budget had increased by 8.1 per cent – is what is considered in the neighbouring countries and the United States with concern. The reason is the growing tensions in the South and East China sea, and Beijing’s threats against Taiwan, the renewed Li in front of the delegates of the people’s Congress. China will take resolute action against separatist activities, the independence sought, the Premier said. The Communist leadership considers the democratic island Republic as a part of the people’s Republic, though she has never heard of.
The National people’s Congress convenes for about two weeks and is expected to adopt at this time a bunch of laws. Including a law on foreign investment in some of the claims of the United States in trade dispute with Beijing can be dealt with. This year’s national people’s Congress is likely to be due to the abgeflauten growth in the economy for President Xi Jinping to be more difficult than in previous years.