China on Wednesday announced its target for economic growth of 5 percent. The forecast is unchanged from last year, despite growing economic challenges, including escalating trade tensions with the United States.
China's largest annual political gathering struck an optimistic tone despite growing economic challenges, A2 reports.
Premier Li Qiang set the country's economic growth target this year at around 5%, one of the fastest growth rates in the world.
"This objective is supported by economic growth potential and favorable conditions," he said.
But despite the optimism, China faces major challenges.
The prolonged real estate crisis has caused a decline in house prices and left many buildings empty.
And now, new United States tariffs are hitting China's exports, further adding pressure to the country's economy.
US President Donald Trump has doubled tariffs on China compared to his first term.
In a speech Tuesday night to Congress, he showed no signs of backing down.
"Other countries have been using tariffs against us for decades, and now it's our turn to start using them against other countries," President Trump said.
This week, China imposed tariffs on American agricultural products, but analysts consider its response to be restrained.
"While President Trump's tariffs are broad-based, China's are more specific and target specific industries and products," said David Goodman, director of the Centre for China Studies at the University of Sydney.
To cope with the tariffs, China has tried to prioritize domestic consumption, but its economy will continue to face challenges.
"There is still overproduction in China, so exports are still necessary for many companies. Therefore, the tariffs imposed by President Trump's administration will have a negative impact," says Jean-Pierre Cabestan, an expert at the Asia Center.
How Beijing faces these challenges will determine whether its optimism matches reality./ Voice of America (A2 Televizion)
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