By: M. Dinata *)
China sets its 2015 economic growth at the lowest rate in 24 years. Premier Li Keqiang, at the opening of The annual National People’s Congress, announce that China Gross Domestic Product (GDP) growth target for 2015 is “around 7%”. This will be the “new normal” target for China in the middle of economic downward pressure.
“Deep-seated problems in the country’s economic development are becoming more obvious. The difficulties we are facing this year could be bigger than last year.” Li said, in front of around 3,000 delegates at the Great Hall of the People to the west of Beijing’s Tiananmen Square. “In order to defuse problems and risks, avoid falling into the ‘middle income trap’, and achieve modernization, China must rely on development, and development requires an appropriate growth rate.”
China economy reform will concern on their fiscal policy. The Goverment intend to increase the spending to 17.15 trillion yuan ($2.74 trillion) in 2015, 10,6% higher than 2014. The spending will be allocated on railway, water projects and modernizing agriculture. This reform aims to decrease pollution from industries and develop their value. As manufacture industry is China’s strong area, Mr. Li want to upgrade it from a manufacturer of quantity to one of quality. These policies implemention are parts of the ‘Made in China 2025’ strategy.
In that meeting, Mr. Li also vowed his commitment to fight against corruption. “Our tough stance on corruption is here to stay; our tolerance for corruption is zero, and anyone guilty of corruption will be dealt with seriously. We will see to it that every instance of corruption, should it be committed higher up or lower down, is severely punished,” he said.
The fight against pollution and corruption have contributed to the slowing economy, but it doesn’t make them careless about their national defence. Eventhough they grow in their slowest pace in almost a quarter of century, they still increase their budget in military spending by 10.1 percent this year to 886.9 billion yuan ($141.4 billion). “As a large country, China needs the military strength to be able to protect its national security and people,” said Fu Ying, a spokeswoman for the National People’s Congress. “Our history teaches us a lesson that when we lag behind, we come under attack. We won’t forget that.”
*) The Author Is Brunei Darussalam’s Contributor.