China presents plan to strengthen the economy and high technology

China presents plan to strengthen the economy and high technology

The Chinese managers presented their strategy last week to control the second largest economy in the world through upcoming challenges. They plan to transform the country into a technological stronghold and increase government expenditure in order to achieve an ambitious growth goal.

political ceremony and challenges

The thousands of delegates who had gathered for the one -week sessions of the Chinese Oberhaus in Beijing voted almost unanimously on Tuesday for the government's work report and the budget.

for the government of China and XI Jinping, the most powerful leader in the country for decades, have been high.

Beijing must tackle a number of domestic political problems, including the consequences of a comprehensive real estate crisis, high debts of local government and weak consumer demand. At the same time, the country is facing increasing economic pressure from the United States, since President Donald Trump increases tariffs to Chinese imports and threatens extended controls on American investments in China.

economic challenges and growth target

On Sunday, new data showed that consumer prices in China have been fallen on the lowest level in February in February, which illustrates the persistent deflationary tendencies that burden the economy.

The Chinese managers were honest with regard to the upcoming challenges and at the same time emphasized their confidence in the future of China. At the beginning of the National People's Congress (NPC), Premier Li Qiang said on Wednesday that the country's growth goal of around 5 % "underlines our determination to tackle difficulties and work hard to achieve our goals".

focus on artificial intelligence and future industries

Artificial intelligence (AI) was the central theme of this year's meeting, and China's enthusiasm for this technology was reinforced by the breakthrough of the tech company Deepseek.

The privately managed Chinese company surprised with its large language models Silicon Valley published in January and inspired the country. The model seemed almost comparable to the skills of American competitors, despite the increasing US restrictions in access to powerful AI chips that are usually used to train such models.

On Thursday, the economic experts in China announced a state-supported fund for promoting AI and other technological innovations, which will be estimated in the next 20 years almost 1 Billion Yuan ($ 138 billion) of local governments and private sector.

demand and promote growth

The officials also announced that the ambitious growth goal of "around 5 %" is underpined by more robust government spending, whereby the budget deficit will increase to around 4 % of the gross domestic product - the highest value for decades.

The fighting spirit of China

Despite the challenges and uncertainty as to whether the tensions in relation to technology and trade with the USA will continue to tighten, the message from Beijing was one of confidence in the past week, regardless of developments. This message is aimed at both the domestic population and Washington.

Wang Yi, the Foreign Minister, tried to present China as a stable global actor, in contrast to the USA and her “America First” policy. He promised that China would continue to drive his ambitions.

"Where there are blockages, there are breakthroughs; where there are oppression, innovation happens," he said.