China sets growth target “around 5%”

BEIJING (AP) —

China’s government on Sunday announced plans for a consumer-driven recovery of its sluggish economy, opening a legislative session that will tighten President Xi Jinping’s control over business and society.

Premier Li Keqiang, head of the economy, has set a growth target for this year “around 5%” after the withdrawal of controls against the virus which confined millions of people and sparked protests. Last year, growth in the world’s second-largest economy fell to 3%, the second weakest since at least the 1970s.

“We must prioritize the recovery and expansion of consumption,” Li said in a speech on the government’s plans to the National People’s Congress, a ceremonial event, at the Great Hall of the People in the city. center of Beijing.

The plenary session of the 2,977 members of Congress is the most important political event of the year, although its work is limited to supporting the decisions taken by the Communist Party, which rules the country, and to highlighting the initiatives official.

Congress was expected this year to approve the appointment of a government of Xi supporters, including a new prime minister. The 69-year-old president cemented his position in October to become China’s most powerful leader in decades by granting himself a third five-year term as party general secretary, a possible step before declaring a term in office. life. Li, a free-enterprise supporter, was ousted from the party’s number two position in October.

Xi’s new team will face challenges such as weak global export demand and looming U.S. tariff hikes that are part of a technology and security dispute that limits access to western processors for safety reasons.

Separately, the Ministry of Finance announced a 7.2 percent increase in the budget of the party’s military arm, the People’s Liberation Army, to 1.55 trillion yuan ($224 billion), the 29th consecutive annual increase. . Chinese military spending is the second highest in the world, behind the United States. The two countries account for half of the world’s military budget, according to the Stockholm International Peace Studies Institute.