Chinese National Party Congress pledges to increase military spending

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Li hailed the implementation of national security laws in neighboring Hong Kong that have crushed dissent in the former liberal enclave and said the central government in Beijing will continue to exercise overarching jurisdiction over the country. former British colony and Macao. “These two regions will integrate into the overall development of the country and maintain long-term prosperity and stability,” he said.

China’s premier told the more than 2,800 politicians gathered that China’s economy faces the “triple squeeze” of slowing demand, supply disruptions and weakening expectations as it continues to fight the coronavirus pandemic. These challenges have forced the Chinese government to set a growth rate target of 5.5% – its lowest rate in three decades – and a target that could have ripple effects on Australian exports such as mineral ore. iron that continues to fuel the Chinese economy.

China has maintained a COVID-zero policy throughout the pandemic to maintain government control and reduce people’s vulnerability to less effective vaccines and high-density living.

But that strategy has created a stop-start economy in some of its biggest cities, including Hong Kong, which is now struggling to overcome 50,000 cases a day – China’s biggest pandemic outbreak.

Capital investment in major infrastructure is expected to be a key driver of economic growth in China. Credit:Sanghee Liu

The outbreak has forced a shift from COVID-zero to “dynamic zero,” which will allow businesses to continue operating and attempt to avoid citywide shutdowns while keeping the border closed.

“The transition to a ‘zero momentum’ COVID policy allows for a more targeted and flexible approach to containing COVID-19, which may help limit some of the downward pressure,” said the chief economist of HSBC for China, Qu Hongbin.

Qu said that for China to reach its long-term goal of matching the standard of living of moderately developed economies in the West by 2035, it will need to grow at least 4.7 percent a year.

“That means policymakers will likely have to deploy more support to help sustain growth, which we believe will be the main focus of this year’s National People’s Congress,” he said.

The congress will take place next week in Beijing. Debates in the legislature are being kept largely confidential until the end of the meeting next Friday. Members of Congress are expected to spearhead plans for the resumption of international tourism, investment in renewable energy, and the abolition of all family planning restrictions.

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