Chinese economic powerhouses set less ambitious GDP goals for 2023
- Guangdong
and Zhejiang provinces both predict their economic growths will be
‘above 5 per cent’ this year, after falling well short of last year’s
targets amid zero-Covid
- As
China looks to bounce back from challenging 2022, authorities of the
manufacturing hubs vow to step up support for private sector and create
jobs
The
provinces of Guangdong and Zhejiang – big manufacturing hubs where
private firms are hallmarks of the local economies – both put their
growth targets at “above 5 per cent” for this year after missing last
year’s goals due to China’s hardline zero-Covid policy, according to the
two provinces’ parliamentary meetings on Thursday.
As
export hubs and major engines powering China’s economy, their gross
domestic product (GDP) growth targets could help shed light on this
year’s national economic growth goal, which the central government will
announce during the national legislative gatherings in March.
“The
[Zhejiang] government will exhaust all measures to push for export
growth and work with enterprises in expanding external markets and
securing more orders,” provincial authorities said in their report on
Thursday.
They projected that Zhejiang’s GDP, which accounts for about 7 per cent of the national economy, grew by 3 per cent last year – or half of the 6 per cent goal that it had set for last year.
They projected that Zhejiang’s GDP, which accounts for about 7 per cent of the national economy, grew by 3 per cent last year – or half of the 6 per cent goal that it had set for last year.
And Guangdong, the country’s largest regional economy, which
accounted for 10.9 per cent of the national economy in 2021, is expected
to have grown by 2 per cent last year, missing its target of 5.5 per
cent and marking its slowest growth rate since the pandemic began in
2020. That would put its 2022 GDP at 12.8 trillion yuan (US$1.89
trillion), equivalent to the GDPs of South Korea or Canada.
“We plan to introduce a new batch of billion-dollar-level programmes to attract foreign investment,” Guangdong authorities vowed on Thursday, adding that the security and resiliency of industrial and supply chains will be enhanced. “We will unveil guidelines to promote private economic development … We will support micro, small and medium-sized companies.
“We plan to introduce a new batch of billion-dollar-level programmes to attract foreign investment,” Guangdong authorities vowed on Thursday, adding that the security and resiliency of industrial and supply chains will be enhanced. “We will unveil guidelines to promote private economic development … We will support micro, small and medium-sized companies.
“The
private economy is the main force supporting Guangdong’s economy. Local
governments at all levels should proactively address difficulties for
private companies and boost their confidence.”
China is set to have missed its original GDP growth target of “around 5.5 per cent” for last year, as repeated coronavirus-induced lockdowns across the country took a heavy toll on manufacturing activities and business confidence in the Chinese market.
China is set to have missed its original GDP growth target of “around 5.5 per cent” for last year, as repeated coronavirus-induced lockdowns across the country took a heavy toll on manufacturing activities and business confidence in the Chinese market.
But having abandoned its zero-Covid policy, with
a gradual reopening of its border, the economy is widely expected to
recover this year.
The similar targets
set by Zhejiang and Guangdong seem to further reinforce such countrywide
projections, but the provinces’ growth goals are lower than those set
by Shanghai at 5.5 per cent and eastern China’s Jiangxi province at 7
per cent.
Both Wang Weizhong, governor of Guangdong, and Wang Hao, governor of Zhejiang, said in their work reports to the regional People’s Congress on Thursday that their 2022 growths did not come easily. But looking forward, they vowed to restore exports, consolidate their footholds in hi-tech and supply chains, and revitalise confidence in their private sectors.
Home to the Pearl River Delta Economic Zone and the Guangdong-Hong Kong-Macau Greater Bay Area, Guangdong also pledged to bolster the city-cluster programmes this year, including by strengthening its transport links with Hong Kong and Macau.
Wang Weizhong said his province will “actively promote the construction of the Greater Bay Area”, while working more closely with Hong Kong and Macau in their development strategies.
Both Wang Weizhong, governor of Guangdong, and Wang Hao, governor of Zhejiang, said in their work reports to the regional People’s Congress on Thursday that their 2022 growths did not come easily. But looking forward, they vowed to restore exports, consolidate their footholds in hi-tech and supply chains, and revitalise confidence in their private sectors.
Home to the Pearl River Delta Economic Zone and the Guangdong-Hong Kong-Macau Greater Bay Area, Guangdong also pledged to bolster the city-cluster programmes this year, including by strengthening its transport links with Hong Kong and Macau.
Wang Weizhong said his province will “actively promote the construction of the Greater Bay Area”, while working more closely with Hong Kong and Macau in their development strategies.
He said Guangdong will “join
hands with Hong Kong and Macau to connect global high-end innovative
talent”, while also striving to make it easier for talent to live in one
of those areas while working in another.
Local officials are prioritising a post-coronavirus recovery this year after China pivoted away from its hardline zero-Covid policy and shifted the focus to bolstering the economy. And they intend to ramp up support for new energy and tech industries such as semiconductors, as the country is also aiming to climb up the industrial and supply chains.
Wang Weizhong also said Guangdong is aiming to consolidate the strengthening of hi-tech, manufacturing and exports, and will promote the relocation of industries from the Pearl River Delta region to less-developed parts of the province.
Local officials are prioritising a post-coronavirus recovery this year after China pivoted away from its hardline zero-Covid policy and shifted the focus to bolstering the economy. And they intend to ramp up support for new energy and tech industries such as semiconductors, as the country is also aiming to climb up the industrial and supply chains.
Wang Weizhong also said Guangdong is aiming to consolidate the strengthening of hi-tech, manufacturing and exports, and will promote the relocation of industries from the Pearl River Delta region to less-developed parts of the province.