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International 'uncertainty' will slow China's growth, premier warns
China will find it hard to maintain high growth in an increasingly uncertain world, Premier Li Keqiang warned Friday, after Beijing set its lowest GDP target in decades.
The country's economy is being weighed down by fears over its "zero-Covid" strategy and post-pandemic recovery, as well as tensions over Russia's invasion of Ukraine -- a conflict that has thrown global markets into disarray and sent oil prices soaring.
"At the global level, maintaining medium to high growth for an economy of this size is a major challenge," Li told reporters, addressing media after the annual parliamentary session -- a week of highly choreographed meetings laying out policy for the year.
China's economy is a key driver of global growth and crucial domestically for the ruling Communist Party, which has based its legitimacy on delivering steady economic expansion and improved standards of living
But Li was on Saturday forced to announce the unusually modest target of around 5.5 percent growth for 2022 -- the lowest since 1991 -- in his speech opening the annual session of China's rubber-stamp parliament.
The world is facing "increasing uncertainties" which will weigh on growth, Li said Friday.
But the premier did not answer a question on what the impact of the Ukraine conflict on the Chinese economy might be.
China is Ukraine's top trading partner, with the former Soviet republic notably supplying the Asian giant with nearly a third of its corn imports.
The country's strict zero Covid policy -- which has helped ensure China did not see the kinds of virus outbreaks seen elsewhere -- has also come with a high social and economic cost, especially as the rest of the world opens up.
China reported 1,369 new Covid cases on Friday -- its highest in two years.
Li -- who also confirmed he would step down from his post next March -- has been largely responsible for driving economic policy in recent years.
He was widely expected to retire, along with other members of the party's top brass, after a twice-a-decade party meeting later this year.
L.Mesquita--PC