Beijing, March 5 China lowered its GDP target to 4.5 to 5 percent for this year in response to Trump's trade tariff war, the worsening global crisis following the US-Iran war, and economic headwinds stemming from the property market slump and the unemployment crisis.
The target, close to that of last year, was announced by Chinese Premier Li Qiang in his work report presented to the annual National People's Congress (NPC), the country's parliament, which opened here on Thursday.
China has been setting a five percent GDP target for the past three years amid growing domestic economic challenges. This year, the target is lowered to 4.5 percent to 5 percent for the first time.
China's economy grew by 5 percent last year, reaching USD 20.01 trillion, despite US tariffs, while domestic consumption, a persistent concern, remained sluggish.
The opening session on Thursday was attended by President Xi Jinping and over 2,000 deputies.
Presenting his work report, a regular feature, Li said the government aims for an economic growth of 4.5 percent to 5 percent this year and will strive to achieve this in practice.
Key development targets for this year also include: an urban unemployment rate of around 5.5 percent, the creation of over 12 million new urban jobs, and an increase in the consumer price index of around 2 percent.
Li also spoke of growth in personal income in line with economic growth, a stable balance of payments, stable grain output of around 700 million tonnes, and a reduction of around 3.8 percent in carbon dioxide emissions per unit of gross domestic product.
Regarding domestic demand, which had remained stagnant for years, making China more dependent on its exports for GDP growth, Li said that China will actively boost consumption and implement a plan for income growth for urban and rural residents.
The country will launch special initiatives to boost consumption, including a range of practical measures to increase the earnings of low-income groups, increase property income, and refine the remuneration and social security systems in 2026.
A total of 250 billion yuan (USD 36.17 billion) will be earmarked for consumer goods trade-in programs, and a special fiscal-financial coordination fund of 100 billion yuan will be created to facilitate domestic demand expansion, he said.
China commenced its annual parliamentary session on Wednesday amid international turmoil over the US-Iran war, massive military purges carried out by Xi, and ambitious plans to develop new productive forces like AI to revitalize the slowing economy.
Xi, 72, who is into his unprecedented third term in office, with little indication of any organized political challenge from within the ruling Communist Party and the powerful military, attended the opening session of the national advisory body of the Chinese People's Political Consultative Conference (CPPCC) on Wednesday. The CPPCC comprises over 2,500 civil society, party, and military officials.
He also attended the NPC opening session on Thursday, flanked by the top leadership of the ruling Communist Party of China (CPC).
The two sessions marked the beginning of China's annual political season, which lasts for a fortnight, during which the leadership appears in public and takes part in internal debates.
Xi's presence was significant as he appeared for the first time along with party officials of all ranks, including PLA members, and sat through the proceedings after the recent massive purges of the Chinese military.