BEIJING: China’s economy is facing growing “uncertainty” in the international environment, as well as insufficient domestic demand, a top economic official said on Thursday (Mar 6).
Beijing set an ambitious annual growth target of around 5 per cent on Wednesday, vowing to make domestic demand its main economic driver as an escalating trade war with the United States hit exports.
US President Donald Trump imposed more blanket tariffs on Chinese imports this week, following a similar move last month.
However, China has “full confidence” that it can reach its growth goal this year, Zheng Shanjie, Chairman of China’s National Development and Reform Commission, told a news conference.
“We have the basic support and guarantee of achieving this year’s growth target of around five percent,” said Zheng, Beijing’s top economic planner, adding his “full confidence in this”.
Speaking on the sidelines of Beijing’s annual “Two Sessions” political meetings, Zheng acknowledged that “uncertainty in the external environment is further increasing”.
“We are also facing some problems such as insufficient domestic demand, production and operation difficulties in some industries and some enterprises,” he said.
“However, we feel that these difficulties and challenges are in the process of development and progress, and they can all be overcome and solved,” Zheng added.
China’s headline growth figure, announced by Premier Li Qiang on Wednesday at an annual Communist Party conclave, was broadly in line with an AFP survey of analysts, although experts say it is ambitious considering the scale of China’s economic challenges.
But experts say it is ambitious considering the scale of China’s economic challenges — and are hoping officials will unveil further economic support this week.
