Achieving 5% GDP target this year not easy: China's Premier Li Qiang

Beijing: China's new Premier Li Qiang on Monday said achieving the five per cent GDP target for the slowing down economy is not an easy task and requires redoubled efforts but assured the country's tattered private sector better environment, broader space for development.

Li Qiang, the long-term aide of Chinese President Xi Jinping who succeeded Li Keqiang, in his first press conference, drew on Chinese folklore to demonstrate the country’s resilience in the face of difficulties but concedes the economy faces challenges.

He acknowledged that achieving the 2023 gross domestic product (GDP) growth target of around five per cent for this year on the current high base of China's economic output is not an easy task and requires redoubled efforts.

Playing down the importance of GDP, he said most people do not keep their eyes on GDP growth all the time.

China, the world's second-largest economy, last year reported a three per cent GDP, the lowest in decades and the target of about five per cent set for this year by Li Keqiang in his work report on March 5 is also the lowest in recent years.

What people care more about are the things that happen in the everyday life like housing, employment, income, education, medical services, and the environment, Li said.

"Therefore, the government must always plan and carry out its work in light of what the people feel and act according to the people's aspirations," he said.

He also points to signs of improvement, saying the economy will “break through the wind and waves and sail towards a brighter future”.

About concerns about the crackdown on the private sector during the past few years, including the periodic disappearance of industrialists for questioning rising concerns, he assured private enterprises in China will enjoy a better environment and broader space for development.

He admitted “inappropriate” discussions and rumours about private entrepreneurs and policies on the private sector have always been consistent.

He said, he worked for a long time in regions with thriving private economies so he is well-informed about the problems the sector faces and reiterated China’s commitment to protecting private entrepreneurs and creating a level playing field, and highlighting new opportunities.

He said China’s economic development is supported by many advantages, such as its massive market.

But its institutional strength is key, he said referring to Xi’s term for institutions under Communist Party rule.

Li stresses the importance of economic stability this year. He says a slew of policy “combinations” will be introduced for the macro economy, to stimulate demand and investment, as well as on reform and innovation, and to prevent risks.

He stressed people-centred development philosophy saying that "the ultimate aim of the work of the Party and the government is to improve the well-being of the people."