China keeps its 5% economic growth goal and promotes innovation and domestic consumption. Beijing intends to implement fiscal measures, such as special treasury bonds and subsidies, to increase consumer demand and invest in high-tech companies in the face of U.S. tariffs and internal economic weaknesses.
To combat deflationary pressures and offset the consequences of growing U.S. trade tariffs, China has maintained its 2023 economic growth target at about 5%. A government paper issued before the National People’s Congress (NPC) emphasized this goal.
China’s policies for the remainder of the year will be covered in a speech by Premier Li Qiang. China’s industrial sector is under pressure from the continued trade disputes with the United States, and economic vulnerabilities are further exacerbated by weak household demand and a faltering real estate market.
China intends to set aside money for high-tech investments and consumer subsidy programs. State banks will be capitalized, and the government’s special debt funds will support electric vehicle subsidies as China balances technical innovation with boosting domestic consumption. Economic resilience is essential as China attempts to balance its financial interests and international trade connections.
