China targets economic growth of around 5% in 2023

An employee introduces vehicle power battery and fuel cell from Freudenberg, a Germany-headquartered global tech firm, to a visitor during the fifth China International Import Expo held in Shanghai in November 2022. (PHOTO / CHINA DAILY)

（ Recommended by Selena Xie - Xie Yanmei ）BEIJING – China aims to expand its economy by around 5 percent in 2023, according to a government work report submitted Sunday to the national legislature for deliberation.

The country will enhance the intensity and effectiveness of its proactive fiscal policy in 2023, said the report delivered by Premier Li Keqiang on behalf of the State Council.

China should do more to implement a prudent monetary policy in a targeted way this year, the report said. 

China's economy is staging a steady recovery, it added.

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Consumer demand, market distribution, industrial production and business expectations have all markedly improved in China, the report said, adding that the economy is demonstrating vast potential and momentum for further growth. 

Efforts to attract, utilize foreign investment

China will intensify efforts to attract and utilize foreign investment, the government work report said.

The country will expand market access, continue to open up the modern services sector, ensure national treatment for foreign-funded companies, improve services for foreign-funded companies and facilitate the launch of landmark foreign-funded projects, it said.

China targets inflation rate of around 3 percent for 2023

China will take active steps to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and other high-standard economic and trade agreements, and steadily expand institutional opening up by proactively adopting relevant rules, regulations, management and standards, the report added.

China should keep the RMB exchange rate generally stable at an adaptive, balanced level in 2023, it added.

Inflation targets

China targets inflation rate, or increase in consumer price index (CPI), of around 3 percent for 2023, said the work report.  

The country should also make efforts to prevent and defuse local government debt risks, it added.

Energizing market, stimulating creativity

China has deepened reform of key areas and crucial links over the past five years to energize the market and stimulate social creativity, the report said.

China has continued reforms to develop the socialist market economy and struck a proper balance between the government and the market, enabling the market to play a decisive role in resource allocation and the government to better play its role, it added.

The country has completed institutional reform of both the State Council and local governments, accelerated efforts to build a unified national market, developed a high-standard market system, and worked to create a market-oriented and law-based business environment in keeping with international standards, according to the report.

China has promoted the common development of enterprises under all forms of ownership. Having upheld and improved its basic socialist economic systems, the country has worked unswervingly both to consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector, it said.

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China has also continued to reform the fiscal, taxation and financial systems. The country promoted the reform of the financial regulatory system and advanced reforms to implement a registration-based initial public offering system, said the report.

Economic and financial risks

China should effectively prevent and defuse major economic and financial risks in 2023, it said. The country needs to deepen reform of the financial system and improve financial regulation.

"We should ensure effective risk prevention and mitigation in high-quality, leading real estate enterprises, help them improve debt-to-asset ratios, and prevent unregulated expansion in the real estate market to promote stable development of the real estate sector," it said.