China NPC open today Focus on economic growth targets and economic measures May 22 5:44

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The National People's Congress of the NPC, which had been postponed due to the spread of the new coronavirus in China, will start in Beijing on the 22nd. While the economy is declining due to the spread of infection, the focus is on how to achieve the economic growth rate targets announced every year.

National People's Congress of China, was attended by representatives such as 3000 people close to the members and around the highest leadership of Xi Jinping Jintao et al Communist Party, one of the most important political dates to determine and policy of the year, this year is the new Due to the spread of coronavirus infection, it will be postponed for about two and a half months and will start in Beijing on the 22nd.

On the first day, the 22nd, Prime Minister Li Keqiang reported on the government's activities, and under the direction of President Xi, he appealed that he had achieved great results by controlling the infection, and emphasized his stance of further shifting to economic recovery. It seems to do.

In China, in response to the spread of infection, how did you target the economic growth rate announced every year while the economy declined, such as GDP = GDP growth rate of minus 6.8% from January to March? The focus is on what kind of economic measures should be specifically implemented, such as launching a plan or large-scale fiscal mobilization to rebuild the economy.

In addition, while strengthening the confrontation stance with the United States over responding to the spread of infection, it is also noteworthy to what extent the defense budget that has continued to increase against the United States will be included in this budget.

Meanwhile, an NPC press secretary Zhang Yi-Zhi, who held a press conference on the night of the 21st, announced that he will discuss the legislation to maintain security in Hong Kong, which continues to protest, in this NPC.

Although the specific details have not been made clear, there is growing caution among Hong Kong citizens that the Chinese government would directly enact the law and lose the one-country-two system.

Focus on economic measures

One of the key points of attention for the entire NPC this year is what concrete measures will be taken to support the economy that was hit hard by the new coronavirus.

In order to support companies affected by the spread of the infection, the central government of the People's Bank of China has reduced the “reserve rate for deposits” to RMB950 billion and the Japanese yen to exceed ¥ 14 trillion. In addition to launching monetary easing measures one after another, such as supplying the market to the market, we are also reducing the social insurance premiums that companies bear and implementing tax cuts.

There are also cases where local governments implement their own consumption stimulus measures, such as distributing "gift certificates" or subsidizing new car purchases.

Xi Jinping leadership, in order to further carry out a large-scale economic stimulus measures, in addition to issue special government bonds to implement the new corona virus, with plans to expand issue frame of bonds of local governments to devote to such as infrastructure investment, the National People's Congress Then, it seems that the scale of fiscal mobilization and concrete measures will be shown.

This is the lowest economic growth rate in 44 years

In China, there is a possibility that the economic growth rate of this year will be the lowest level in 44 years due to the influence of the new coronavirus.

In China, the infection with the new coronavirus spread the fastest in the world, and since January, production of plants has stopped in various places due to various regulations such as the movement of people in order to suppress the spread of infection and other restrictions. Except for some industries such as supermarkets, many stores were forced to close, and the impact was widespread.

As a result, GDP for the first quarter from January to March was minus 6.8% compared to the same period last year, the first negative since 1992 when quarterly statistics were published. It was.

After that, the Chinese government urged the resumption of economic activities as "basically suppressing the spread of infection in the country", and as a result, industrial production recovered to positive for the first time in four months, which is one of the major economic indicators in April. , New car sales and mobile phone shipments have also recovered to levels higher than last year.

However, while the infection will not spread again or the vigilance will continue, the consumer sentiment has not returned to its original level, and jewelery and clothing sales have continued to decline, and last month's sales of the food and beverage industry were 30% of last year's. The service industry is still in a difficult situation, with less than the above.

Furthermore, due to the spread of infections overseas, there is concern that exports will fall, and we cannot predict the future.

For this reason, many private think tanks expect China's annual economic growth rate to be around 1% to 3% this year, the last year of the Cultural Revolution in 1976, which brought about great disruption to society and the economy. Since then, it is possible that it will remain at the lowest level for the first time in 44 years.

China's economic downturn impacts important policies

Affected the drop in the Chinese economy of the new coronavirus has also have an impact on important policy listed is Xi Jinping leadership.

Xi Jinping leadership before from celebrating the milestone of the Chinese Communist Party founding 100 years next year, the year in 2020, aiming somewhat of leisure society, the full realization of the "well-off society", has set a target I will.

The pillar is to double GDP and the average income of the people compared to 2010.

According to calculations by private-sector think tanks, GDP growth of around 5.6% is required for the final year to reach the target.

However, due to the spread of the new coronavirus, the GDP from January to March was minus 6.8% compared to the same period last year, and the Chinese economy was severely hit, making it difficult to achieve the target. It is in the situation.

Xi Jinping leadership towards the realization of the "well-off society", poverty eradication and, have also listed goals, such as improvement of environmental issues, this place has stressed that "poverty eradication is the most important task."

As Xi Jinping leadership, among which there is a need to appeal to the goals for the realization of the "well-off society" over the prestige of the Communist Party, or not the direction of policy in ways that emphasize the poverty eradication is launched at the National People's Congress There is a view that.

Expert "The situation is improving, but far from normal"

For the NPC, the government's report on the first day on the first day of the year showed a target for the annual economic growth rate, which means that while the outbreak of the new coronavirus could not predict the economic outlook, Attention is focused on how to set goals and economic policies.

“We are in the process of resuming production, but not a complete recovery.” The supply chain was disrupted. Some have stopped ordering. The situation has improved since April, but it is still far from normal, "he said, saying that it will take time for a full-scale recovery. I am.

Then, regarding the goal of economic growth indicated by the NPC, he said, "I think it will be something more like a rough guideline." Pointing out the sex.

Regarding economic policy, he added, "In addition to expanding the budget deficit and increasing the number of municipal bond issuances to increase investment in infrastructure, special government bonds issued to deal with the new coronavirus as an emergency measure were issued. It will grow in size, "he said, envisaging the prospect of large-scale fiscal spending to underpin the economy.

Regarding the outlook for the Chinese economy, the second quarter (April-June) and the third quarter (July-September) are taking into consideration the fact that the economy is deteriorating in Europe and the US due to the spread of infection. Trade is even more difficult and optimistic, making it difficult to predict the future. ”