China Confident in Achieving 5% Economic Growth Amid Strong Start, Unveils Strategies for Innovation and Sector Upgrades

China's top economic officials have expressed confidence in achieving their annual economic growth target of around 5%, citing a strong start to the year. In the first two months, exports increased by about 10% and medium- and long-term loans from banks surged by over 30%. Zheng Shanjie, head of the National Development and Reform Commission, highlighted priorities such as supporting scientific and technological innovation, integrated development of urban and rural regions, food security, and energy security.

Premier Li Qiang had announced the growth target at the National People's Congress, acknowledging the challenges. The officials mentioned that there is ample room for maneuvering and emphasized the need to increase support for areas with huge construction demand and long investment cycles.

China's central bank, represented by Pan Gongsheng, and other senior economic planners discussed the availability of policy tools, including potentially reducing the reserve ratio requirement for banks. They also emphasized the commitment to utilizing 1 trillion yuan ($140 billion) in special, ultra-long-term bonds to upgrade industries, particularly in key areas like clean energy.

Despite robust export growth, Commerce Minister Wang Wentao cautioned about global demand remaining muted due to protectionist measures. To boost consumer spending, the government plans to use tax policies and incentives to encourage families to replace older vehicles, upgrade appliances, and redecorate apartments.

In addressing concerns about the financial markets, the chairman of China’s Securities Regulatory Commission, Wu Qing, acknowledged intervening in markets when authorities deemed it necessary. China's stock markets had faced challenges, but recent measures, including crackdowns on price manipulation and insider trading, have led to some recovery, although the Hang Seng index in Hong Kong remains 20% below its position a year ago.