Photo:Xinhua

Chinese new Premier Li Qiang said that achieving around a five percent of GDP growth target needs combined policies, and he holds confidence in the Chinese economy, saying that Chinese economy will sail toward a bright future.

Premier Li made the remarks at a press conference after the closing of the first session of the 14th National People's Congress on Monday.

Achieving high-quality development across the Chinese economy needs combined policies including macro policy, expanding demand, reform and innovation, and preventing and defusing risks, Li said. 

He explained that expanding demand includes domestic and external demand, and investment, and the reform and innovation covers institutional, technological and industrial innovation.

China has set its annual GDP growth target at around 5 percent for 2023, as the country embarked on a rapid economic recovery after a decisive victory against COVID-19, while placing emphasis on ensuring economic stability and high-quality growth, sustainable development amid global economic volatility and geopolitical uncertainty.

Premier Li said the target was set following comprehensive consideration of various factors, and it is not an easy task given new challenges this year and the high economic base achieved last year.  

Regarding specific policy measures, Premier Li said the annual Central Economic Work Conference had laid out a comprehensive roadmap, and the basic orientation is stability, which means to seek progress while maintaining stability, and promote the overall improvement of economic operation.

"The key of stability is to stabilize growth, employment, and prices, and the key of progress, is to make new progress in high-quality development," Li said. 

But he emphasized that there are still advantages unique to China, for example, the market is huge, the industrial system is complete, the labor market remains strong, the foundation for development is solid, and more importantly, the institutional advantages, he said. 

"Speaking of the difficulties, we have always achieved new development in overcoming difficulties, and we Chinese will not be overwhelmed by any difficulties," he said. 

But he said China's economic development has shown a trend toward stabilization and recovery and some global institutions also raise their prediction on China's economy growth. 

"I believe the Chinese economy will break winds and waves and sail toward a bright future," Li said, adding that he has "full confidence" in that prospect.

Since the start of 2023, foreign institutions have collectively raised their expectations for China's economic growth this year.

On March 6, USB raised its forecast for China's GDP growth for this year to 5.4 percent from the previous 4.9 percent, and the main reason for the upgrade of China's economic growth forecast is the country's economic reopening in January-February being better than they had expected, the feared "second wave" of COVID infections didn't materialize, and supply disruptions were minimal.