Petra Williams

(live from Beijing, China)

Petrathespectator.com

Chinese Premier Li Qiang opened the proceedings for the Third Session of the XIV National People’s Assembly by presenting the Report on the Work of the Government. This document reviewed the achievements of 2024 and outlined the goals for the conclusion of the XIV Five-Year Plan in 2025.

His presentation was formatted similarly to the annual budget presentations by Caribbean Ministers of Finance.

The National Legislature received the report, which the Assembly will review and approve during meetings this week before its official publication.

Premier Li’s presentation highlighted China’s resilience to global and domestic challenges and its progress toward socialist modernization.

Premier Li described 2024 as ” extraordinary” for China, a year of stability and progress. Under the Xi Jinping-led Central Committee of the Communist Party, the economy met its leading economic and social objectives established at the start of the year within the context of the five-year plan. Gross Domestic Product (GDP) reached 134.9 trillion yuan (EC$50 billion), with a growth of 5%, ranking
among the world’s major economies and contributing approximately 30% of global growth. Foreign exchange reserves stood at US$3.2 trillion at the end of 2024.

Outstanding achievements highlighted during the presentation included the creation of 12.56 million urban jobs, an average unemployment rate of 5.1%, and a 0.2% increase in the CPI. Additionally, foreign trade set a historical record: foreign exchange reserves exceeded 3.2 trillion yuan (EC$1.2 trillion), and disposable per capita income grew by 5.1% in real terms. Grain production reached a
new milestone of over 840 million tons, and electric vehicles reached 13 million, with sectors such as high-tech manufacturing and information technology recording significant increases in output.

Social policies in 2024 advanced a consolidated approach to poverty alleviation and the enhanced delivery of essential services such as education, health care, and social assistance.

Li Qiang reported that significant improvements led to environmental milestones in air and water quality; renewable energy capacity increased by 370 million kilowatts.
Premier Li cautioned that amid these successes, there were significant challenges for the year, led by weak domestic demand, natural disasters, and external risks such as a rise in global protectionism and geopolitical tensions, which will likely deteriorate further for 2025.

Looking forward to 2025, the last year of the XIV Five-Year Plan, Premier Li outlined the main economic targets 2025 to be “GDP growth of around 5%; surveyed urban unemployment rate of around 5.5%; over 12 million new urban jobs; Consumer Price Index (CPI) increase of around 2.0%; growth in personal income in step with economic growth; a basic equilibrium in the balance of payments; grain output of over 700 million metric tons; a drop of around 3% in energy consumption
per unit of GDP; and continued improvements in the environment..”

Premier Li emphasized that these goals balance sustained growth, well-being, needs, and possibilities.

The primary focus is on stabilizing employment, minimizing risks, and improving the lives of the Chinese people. He proposed more active fiscal policy engagement, with a government budget deficit of 4% (equivalent to 5.66 billion yuan or EC$2.1 billion) and the issuance of special bonds for 1.3 billion yuan (EC$485 million).

Complementary monetary policy will be “appropriately lax” with reductions in the cash ratio and interest rates to improve liquidity and support key sectors such as consumption and innovation.

Multiple strategic priorities were identified for 2025. Among them, boosting domestic demand was consistently emphasized throughout Premier Li’s presentation and was identified as needing priority attention. Active support to stimulate increased consumption will come from a 300 billion yuan (EC$111.6 billion) bond issue designated to revitalize and/or facilitate consumer goods purchases,
which is directly related to enhancing domestic consumption.

Alongside increased domestic demand, Premier Li highlighted the need for continued economic reform, including simplifying private investment processes, protecting private corporations to encourage domestic confidence in investing, and facilitating the rapid expansion of the private sector.

He listed the creation of a unified national market as a priority. Premier Li emphasized that under Xi’s CCP leadership, the essential mechanisms would be established to facilitate the development of emerging industries, including artificial intelligence and quantum technology.

Premier Li’s presentation cited increased participation in domestic business creation as a factor and increased investment in innovation and education, which would accelerate the construction of a high-
level educational and scientific system.
As China progresses towards modernization with Chinese characteristics, rural development, food security , and social welfare will remain national priorities in 2025. More cities in rural areas will receive infrastructure attention, and real estate market challenges will be actively addressed. Public services and social welfare will also be expanded in underserved rural communities, and pension programs will be upgraded to afford the elderly better living.

Regarding international trade relations and the attraction of foreign direct investment, Premier Li indicated that China would continue to serve as an international trading partner, “fostering global cooperation” while establishing higher standards for “opening up and stabilizing foreign trade and investment in 2025.” He re-emphasized his government’s commitment to multilateralism and the economic growth of the Global South through zero tariffs on the import of goods from developing countries.

Premier Li emphasized China’s commitment to sustainable development beyond the Paris Climate Agreement in pursuit of environmental strategic priorities for 2025. China will continue to enhance environmental protection by “strengthening pollution prevention and control and advancing ecological construction, accelerating the development of a green and low-carbon economy and actively and steadily promoting peak carbon emissions and carbon neutrality.”

In a closing unity call, Premier Li Qiang stressed China’s institutional strength, mass market, and capacity for innovation as a basis for sustained development and a bright future under President Xi Jinping.

Premier Li reiterated that “China’s ship will sail safely and will reach far, the Chinese Government is committed to successfully closing the XIV Five-Year Plan and laying the foundations for the XV, moving towards the goal of a modern socialist country with Chinese Characteristics.”