Lower Economic Growth Target, China Aware of Challenges

Chinese Foreign Ministry spokesman Mao Ning. / ANTARA / Desca Lidya Natalia.

JAKARTA - Chinese Foreign Ministry spokesman Mao Ning said China was aware of the difficulties and challenges it faced but remained confident it could overcome them while explaining the country's reduced economic growth target to 4.5 - 5 percent in 2026.

"In the future, as Prime Minister Li Qiang said, we are well aware of the difficulties and challenges we face. Even so, the underlying conditions for China's long-term growth and fundamental trends remain unchanged," said Chinese Foreign Ministry spokesman Mao Ning at a press conference in Beijing, Friday, March 6. reported by ANTARA.

On Thursday (5/3), Prime Minister Li Qiang announced at the opening of the Chinese National People's Congress (NPC) that the country's economic growth target would be 4.5 - 5 percent in 2026 or the lowest in the last three decades.

"The longer, the more China shows the strength of its system and the strength it has as a big country. As long as we fully utilize the strength and respond to challenges in the right way, it will definitely open up more promising prospects for China's development," added Mao Ning.

China, said Mao Ning, will also fully implement the new development philosophy in all lines, move faster to promote new development patterns, and promote high-quality development.

"China will promote high-quality economic growth while achieving appropriate economic output growth. We will further expand high-standard openness, adhere to mutually beneficial cooperation, and continue to promote institutional openness," said Mao Ning.

He said China would also be more involved in the global economy so that more people around the world would benefit from China's development.

According to Mao Ning, China's gross domestic product (GDP) in 2025 increased by almost 10 trillion compared to the previous year and grew by more than 35 trillion RMB over five years.

"This is equivalent to the size of the GDP of an average economy. This extraordinary achievement has been achieved in a difficult and complex environment, where external shocks and challenges are intertwined with domestic difficulties and difficult policy choices. This shows a lot about the resilience and strength of China's economy," said Mao Ning.

In his presentation, PM Li Qiang explained that due to the complex and challenging international environment, China is committed to a strategy of expanding domestic demand.

By 2025, total retail sales of consumer goods in China are expected to exceed 50 trillion RMB or account for 52 percent of China's overall economic growth, but China's household consumption is still relatively low compared to developed countries, around 40 percent of GDP by early 2025.

Li Qiang said the Chinese government took steps to stimulate the impulse for household spending by increasing income for urban and rural residents and various practical measures to increase the income of low-income groups, income from property, and improve the remuneration and social security system.

To encourage the expansion and increase in the consumption of goods, the Chinese government will launch ultra-long-term state bonds of 250 billion RMB which will be allocated to the "trade-in" program for consumer goods and other policies that will be improved.