China said it was confident of meeting this year’s growth target of around 5 percent by generating 12 million new jobs and encouraging consumer spending following the end of anti-virus controls that kept millions of people at home.
China’s Cabinet planning officials, however, did not announce details of spending or other initiatives to revive growth that slumped to 3 percent last year, the second-lowest in decades, AP reported.
But they said they plan an array of measures to meet goals announced Sunday by Premier Li Keqiang by raising incomes and encouraging innovation.
Efforts to revive the Chinese economy have global implications after weak retail, auto and housing sales depressed demand for imports.
China is the biggest export market for its Asian neighbours and an important revenue source for Western companies.
There are many policy tools in our toolbox, the deputy chairman of the National Reform and Development Commission, Li Chunlin, said at a news conference held during the meeting of China’s ceremonial legislature on Sunday.
The premier’s work report was unusually brief and gave few details, suggesting the ruling Communist Party will wait until a new premier and Cabinet ministers are appointed this month in a once-a-decade handover to announce tax, regulatory, subsidy and other changes.
This year’s job creation target is 12 million, up from last year’s goal of 11 million and below the 12.1 million that was achieved, according to Li.
The NDRC chairman, Zhao Chenxin, said the priority is to release consumption potential and promote an innovation-driven development strategy.
That is in line with the ruling party’s plans to nurture self-sustaining growth based on consumer spending instead of exports and investment and to generate prosperity and global influence by making China a creator of valuable technologies.
The NDRC’s Li, however, warned that the global environment is becoming more complex and severe, a reference to weak export demand due to Western interest rate increases to cool inflation and strained relations with Washington and other trading partners over technology, security and territorial disputes.
That will add to pressure on Chinese export industries that support millions of jobs, increasing the importance of self-sustaining business activity at home.
Ability to consume comes from employment and income, so the government must increase the income of urban and rural residents, Li said.
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