China is lowering its annual economic growth target to its lowest level in decades. At the same time, it is trying to revive the economy, while the war between Russia and Ukraine is sending oil prices soaring and affecting the global economy.
Premier Li Keqiang said in a report presented today at the National People’s Congress (NPC) meeting that the Chinese Communist Party is targeting economic growth of about 5.5% this year.
China’s gross domestic product (GDP) target of around 5.5% this year is a sharp decline from last year’s 8.1% growth.
Mr. Li said in a report to the ceremonial legislature, “Achieving this goal will require arduous efforts.”
The analysts stated that the Russian attack on Ukraine is unlikely to have much impact on China. However, China could face problems due to higher energy costs.
China has sought to avoid interfering in the war between Russia and Ukraine by calling for talks but refusing to join other governments in sanctioning Russia.
China has also condemned trade and financial sanctions against Russia, saying the United States is the cause of the conflict.