JAKARTA (TheInsiderStories) – Chinese government decided not to put numerical targets for the economic growth in this year amid the COVID-19 pandemic, said the prime minister on Thursday (05/21). Now, said Prime Minister Li Keqiang, the country focuses on employment and maintaining the stability.
“This is because our country will face several factors that are difficult to predict in its development because of the COVID-19 pandemic, the world economic and trade environment,” said the premier in an official statement.
Li set a target for nine million jobs in urban areas, lower than the previous year’ target of around 11 million. He also targeting the budget deficit widens to more than 3.6 percent of gross domestic products (GDP), implying a deficit that is far greater than the 2019 target of 2.8 percent.
Then, a greater spending to revive a epidemic-hit economy and control the spread of the virus will be funded by the issuance of a RMB1 trillion (US$140.45 billion) state debt. On May 13, Li said more efforts should be made to ensure six priorities and stability in six areas for steady economic fundamentals.
The six priorities, namely, employment, people’ livelihoods, the development of market entities, food and energy security, and stable operation of industrial and supply chains, as well as smooth functioning at the community level, are positive measures against difficulties and challenges because they address prominent contradictions and risks faced by the current economy and require a lot of effort, the Premier added.
“Faced by the unprecedented challenges, efforts should be made to follow up on changing the global situation and step up macro-regulation to ensure six priorities and stability in six areas (employment, finance, foreign trade, foreign investment, domestic investment, and market expectations), for steady economic fundamentals,” said the premier.
He continued, all countries around the world see employment as a core issue of their macro-policies, while the main purpose of ensuring employment is to bolster people’s livelihoods, the Premier said. In addition, market players have a direct relation to employment and people’ livelihoods.
“By holding the bottom line of six priorities and keeping steady economic fundamentals, we can definitely buy time over difficulties, and lay a solid foundation for a moderately prosperous society in an all-around way,” said Li.
He asserted, to ensure the six priorities and stability in six areas, macro-regulation should be stepped up, with a combination of fiscal, monetary, social insurance, and pro-employment policies. More targeted regulatory and control measures also should be adopted.
Premier Li also called for enhanced reform and opening-up efforts, and incentives to encourage innovation at primary levels so that market players’ vitality and social creativity can be further stimulated. Through win-win cooperation and further opening-up, the industrial chain and supply chain will be stabilized, and the resilience and potential of economic development will be enhanced, he added.
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