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WORLD NEWS Wednesday 6 March 2019

China sets robust growth target to shore up cooling economy

By JOE McDONALD nist Party’s military wing, the
Associated Press People’s Liberation Army,
BEIJING (AP) — China an- will rise to 1.2 trillion yuan
nounced a robust annual ($178 billion), according to
economic growth target a separate report issued by
and a 7.5 percent rise in the finance ministry. Chi-
military spending Tuesday na’s total military outlay,
as it convened an annual the second-largest behind
legislative session over- the United States, is esti-
shadowed by a tariff war mated by independent ex-
with Washington. perts to exceed $220 billion
Seeking to defuse U.S. and a year when off-budget ex-
European complaints the penses are added in.
Chinese system is rigged The spending will pay to
against foreign companies, expand China’s navy and
Premier Li Keqiang prom- acquire advanced aircraft
ised in a speech to the Na- and other weapons to help
tional People’s Congress Beijing enforce its territorial
that they will be “treated as claims in the South China
equals” with their Chinese Sea.
competitors. The slower rise in military
Li, the country’s top eco- spending, down from dou-
nomic official, set this ble digit increases in previ-
year’s growth target at 6 Chinese President Xi Jinping, foreground left, and Chinese Premier Li Keqiang, foreground right, ous years, reflects changing
to 6.5 percent, reflecting look as they arrive at the opening session of the China’s National People’s Congress at the Great priorities, said Yue Gang, a
determination to shore up Hall of the People in Beijing, Tuesday, March 5, 2019. military expert and retired
a cooling state-dominat- Associated Press Chinese army colonel.
ed economy and prevent growth in China, especially construction. more support for entrepre- “It is more urgent for China
politically dangerous job if it was driven by domestic China’s emergence as a neurs who generate much to prepare for a trade war
losses. Such a growth rate, consumption demand and competitor in smartphones, of China’s new jobs and with the U.S., instead of a
if achieved, would be involved fewer financial telecom equipment, so- wealth. physical war,” Yue said.
among the world’s stron- system risks, could be a net lar power and other tech- Legislators also are due to Military reforms are nearly
gest. Yet it would be slightly positive for the world econ- nologies has increased the endorse a law that aims to complete, and “China
below last year’s 6.6 per- omy,” Prasad said. range of products avail- ease tensions with Wash- needs the money to be
cent growth in China and At the legislative session in able to consumers and ington and Europe by dis- used for more urgent mat-
would mark a new three- Beijing, Li promised to “pro- helped to drive down pric- couraging officials from ters,” he said.
decade low. mote China-U.S. trade ne- es. But it rattles Washington pressuring foreign compa- The tariff fight with Trump
The slowdown in China, gotiations,” but gave no and other governments nies to hand over technol- over Beijing’s technology
the world’s second-largest details of talks aimed at that worry Chinese compe- ogy. ambitions has rattled Chi-
economy after the United ending the fight with Presi- tition is a threat to their in- Higher government spend- nese consumers and inves-
States, is likely to hold back dent Donald Trump over dustries and employment. ing will push the budget tors, prompting some to put
international growth. Beijing’s technology am- Li warned that the second- deficit from 2.6 percent of off spending, which could
“China is still a very large lo- bitions and complaints it largest economy faces a total economic output to add to downward pressure
comotive pulling the global steals or pressures compa- “graver and more compli- 2.8 percent, Li said. on economic growth.
economy,” said Sung Won nies to hand over technol- cated environment” and The plans reflect “emphatic News reports say Washing-
Sohn, chief economist at SS ogy. risks that “are greater in pro-growth efforts” to “off- ton and Beijing might be
Economics in Los Angeles. Li, No. 2 in the ruling Com- number and size.” set external headwinds,” close to an agreement to
“As the Chinese economy munist Party behind Presi- The two-week gathering of Vishnu Varathan of Mizuho end the battle. But the chief
slows, this will have an im- dent Xi Jinping, pledged the congress’s 3,000-plus Bank said in a report. U.S. envoy, Trade Repre-
pact around the world. We higher spending on devel- delegates in the cavernous Proposed tax cuts of up sentative Robert Lighthizer,
are already seeing that im- opment of technologies Great Hall of the People is to 2 trillion yuan ($300 bil- said earlier the two sides still
pact.” including artificial intelli- China’s biggest event of lion) would put “significant had much work to do.
Still, Eswar Prasad, an gence, electric cars, bio- the year. It does little law- spending power” in the No agreements have been
economist at Cornell Uni- technology and new ma- making, but serves as a hands of consumers and announced on the core
versity, suggested that a terials that China’s leaders platform to highlight the companies, helping to of the dispute: U.S. pres-
more manageable pace see as a path to prosperity government’s plans for the buoy sagging demand for sure on Beijing to roll back
of growth in China could and global influence. He year. autos, household applianc- its plans for state-led cre-
benefit the global econo- also promised more money Xi’s government is expect- es and other goods, Vara- ation of global competi-
my in the long run. for education, social pro- ed to use this year’s session than said. tors in robotics and other
“Slower but more balanced grams and public works to announce tax cuts and Spending on the Commu- technology.q