By Yusuke Miura, senior research officer at Mizuho Research Institute
The Chinese government made a reasonable decision not to set a numerical target for the annual economic growth rate. This was precisely because the spread of the coronavirus has increased economic uncertainty. The goal of doubling the growth of the country’s gross domestic product in 2020 from the 2010 level has now become difficult to attain.
The government is prepared to extend more financial aid to smaller firms to keep employment stable. It projects the nation’s economy will grow throughout 2020, but since there are many risks that could put a damper on employment and income, the economy could turn into negative territory.
By Takashi Suzuki, associate professor at Aichi Prefectural University
Overall, the government places importance on political and social stability at home. It touted to some degree the results of its fight against the coronavirus. It stressed it will focus on securing jobs, as unemployment could lead to political instability.
With regards to foreign policy, the government also maintains a cautious stance and keeps a low profile. It refrained from using language that may provoke the U.S. and other nations, such as “making China a powerful manufacturing hub” and “building up maritime strength.” The “One Belt One Road” initiative was mentioned less and the expression “quality One Belt One Road” was sometimes used. It appears to have paid heed to international criticism that its lending to developing nations is excessive.