China aims to set the record GDP growth in this year

China is aiming for economic growth of more than 6% this year, Prime Minister Li Keqiang said at the opening of the annual Chinese National People’s Congress in Beijing. Li also announced that China wants to create 11 million new jobs in cities by 2021.

China’s expected gross domestic product growth is much lower than what analysts predicted. They expect the economy to grow by more than 8% this year. Prime Minister Li stated that the 6% target includes the “recovery of economic activity”, referring to the economic consequences of the coronavirus crisis.

Last year, for the first time since 2002, the government cancelled the annual economic growth target, due to the uncertainties associated with the coronavirus pandemic. In 2020, the Chinese economy, the second in the world, according to official figures, grew 2.2 percent. This made China the only economic power that did not decline last year.

The Chinese prime minister also announced that the country will invest much more in key technological research such as high-quality chips, operating systems, processors and cloud computing. In doing so, China wants to become less dependent on American companies in these areas and more self-sufficient. Many Chinese tech companies have been blacklisted by Washington for alleged close ties with the Chinese military. American groups are therefore not allowed to do business with these companies.

Spending on research and development (R&D) will increase by more than 7% annually over the next five years, Li said. “Innovation remains at the heart of China’s modernization. We will strengthen our science and technology to provide strategic support to China’s development.”Beijing also wants 5G networks to be built faster for high-speed internet in the country.