China: Asian giant sets its lowest growth target in decades in the face of stagnant consumption
During the key annual political meeting known as the Two Sessions, Beijing also announced a 7% increase in its military budget, the second largest in the world.
Xi Jinping during the National People's Congress (NPC).
China announced Thursday that its growth forecast for 2026 will be between 4.5% and 5%, the lowest figure in decades. Still, the government sees this target as key to addressing the slowdown in domestic consumption and the prolonged weakness in the real estate sector.
During the important annual political appointment known as the Two Sessions, Beijing also communicated an increase of 7% in its military budget, the second largest on the planet. With this increase, it seeks to balance the influence of United States and to strengthen its claims over Taiwan and the South China Sea.
The government plans to spend 1.9 trillion yuan, about $276.8 billion, on defense, a figure that is still about one-third of U.S. military spending.
The "lowest since 1991" growth target
Although China is the world's second-largest economy and provides about a third of global growth, it faces deep structural imbalances and increasing trade pressure from Washington, despite its exports continuing to show strength.
"Last year's achievements were very difficult to achieve" noted Premier Li Qiang as he opened the annual session of the National People's Congress (APN) Thursday morning.
"Rarely in many years have we faced such a serious and complex scenario, where external crises and challenges were intermingled with domestic difficulties and difficult policy decisions," he added.
According to an AFP analysis, the growth target set for this year is the lowest since 1991. The only exception was 2020, when no target was set due to the impact of the Covid-19 pandemic on the economy.
Purges continue
On this occasion, it was the Chinese People's Political Consultative Conference (CCPPC) that adopted expulsion measures against 15 of its members on Monday, including three retired generals: Han Weiguo, Liu Lei and Gao Jin, the agency said.
No reason was provided.
Since taking over as Communist Party chief in 2012, Xi Jinping has pushed an intense anti-corruption campaign in both the civilian and military spheres.
In recent weeks there has been the ouster of an influential general and, in addition, another pillar of the system, the National People's Congress (APN), last week expelled 19 of its members, among them nine high-ranking military officials, without offering any explanation.
At the same time, it also approved the dismissal of the emergencies minister following the opening of an investigation into alleged corruption.
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