China sets economic growth target at 5% for 2023, lowest in over 25 years

China on Sunday set a five per cent growth target for 2023 as the country’s rubber-stamp Parliament commenced its annual session which also heralded a new era for Xi Jinping’s presidency as he began an unprecedented third five-year term. China unveiled its lowest growth target in more than a quarter-century as Beijing faces challenges in the domestic and global economy following its emergence from three years of strict Covid-19 measures. 

Premier Li Keqiang, 67, the Number 2 ranked leader after Xi and is widely regarded as far less powerful than his predecessors, signed off his 10-year stint by presenting his last work report to the National People’s Congress (NPC) in which China, the world’s second-largest economy, set a five per cent growth target for 2023, lowest in decades.

He also firmly warned of “escalating” external attempts to “suppress, and contain” China. “The term of this government is about to come to a close,” said Li, as he began his 39-page address to NPC, the national legislature, outlining the decade-old achievement of his administration which included seismic changes in China and its relations with the world. The NPC during the session will herald new official appointments at the top expected to be packed with Xi’s loyalists many of whom were elected along with him at the last October's once-in-a-five-year Congress of the ruling Communist Party of China (CPC). The session formally heralded the beginning of the ‘unprecedented’ third five-year term for Xi. The Congress, besides electing Xi, 69, for an unprecedented third term also chose most of his loyalists for key bodies consolidating his power at all levels.

Li, an economist and a contender for the post of General Secretary of the CPC in 2012 along with Xi, settled for a number two position after his mentor and former president Hu Jintao backed Xi at the last minute, enabling him to emerge as the most powerful leader heading the party, the military and the Presidency. As Xi became more powerful, Li mostly confined himself to managing the economy, unlike his predecessors who enjoyed more power in running the government. 

Li is widely expected to be succeeded by Li Qiang, a Xi loyalist and the former party boss of Shanghai, to head the new administration to grapple with China's external and  internal challenges under Xi's leadership.