China sets 2024 growth target, encouraging foreign investment

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Mar 08, 2024, 03:05 ET

BEIJING, March 8, 2024 /PRNewswire/ -- A news report from Beijing Review:

China has set its GDP growth target at around 5 percent for this year. The target was revealed in the government work report delivered by Premier Li Qiang at the opening meeting of the Second Session of the 14th National People's Congress (NPC), China's top legislature, in Beijing on March 5.

The Second Session of the 14th National People’s Congress, China’s top legislature, opens in Beijing on March 5 (WEI YAO)

The report reviewed the country's achievements over the past year and outlined its future direction. The projected GDP growth goal is consistent with last year's growth target. The Chinese economy showed strength and resilience in 2023, recording a year-on-year growth of 5.2 percent.

Han Baojiang, head of the China Market Economics Society, said the GDP growth objective is both pragmatic and inspiring, indicating the Central Government's continued emphasis on the quality of growth.

The country remains a crucial driver of global development, with its economy rebounding in 2023 and contributing around 30 percent to world economic growth.

While challenges persist in furthering China's economic recovery, the overall trend of recovery and long-term improvement remains unchanged. The Chinese leadership has emphasized the importance of pursuing progress while maintaining stability. Consolidating and bolstering the momentum of economic recovery are of the utmost importance.

"If China can deliver its growth target, that would be spectacular. The Chinese economy is so large that any level of growth helps the folks in China, and it makes China a contributor to overall growth in the world. And so there's a knock-on effect: If China does well, China will also consume," Michael Hart, President of the American Chamber of Commerce in China, told Beijing Review.

The work report stated that China will pursue a higher standard of opening up and promote mutual benefits. Specifically, efforts will be made to steadily increase the volume and raise the quality of foreign trade.

Commerce Minister Wang Wentao mentioned at a news conference on March 6 that positive signs have emerged as China's foreign trade sector maintained its growth momentum in the first two months of this year. And many enterprises are expanding their market presence by participating in trade shows and venturing abroad.

To further improve foreign trade, China will intensify support for import and export credit, export credit insurance, as well as improve cross-border settlements, risk management for foreign exchange and other related services, according to the report.

The country will deepen efforts to attract foreign investment. This includes shortening the negative list for foreign investment, a list of industries in which foreign investment is restricted or prohibited, and ensuring that foreign-funded enterprises can participate in government procurement, bidding, and standard-setting processes as per the law and on an equal footing.

The report also stated that all market access restrictions on foreign investment in manufacturing will be abolished, and market access restrictions in service sectors, such as telecommunications and healthcare, will be reduced.

The country will also strengthen services for foreign investors to make China a favored destination for investment. Furthermore, efforts will be made to facilitate easier access for foreign nationals to work, study and travel in China.

As a major manufacturing country, China has the largest and most complete industrial system, along with fully developed infrastructure, which enhances its attractiveness to foreign companies and investors, especially in the face of a flagging global economic recovery and the economic implications of rising protectionism, according to Zhang Yansheng, chief researcher at the Beijing-based China Center for International Economic Exchanges.

The researcher went on to note that China's massive market and huge demand provide strong motivation for foreign investors to set up facilities in closer proximity to their Chinese customers, "without being bogged down by relatively high labor costs."

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SOURCE Beijing Review