China’s economic targets will get trickier to achieve

Significance The GDP growth target of 5% and the urban job creation target of 12 million are unchanged from last year, but harder to achieve as the post-pandemic rebound fades and large-scale fiscal and monetary stimulus is not forthcoming. Impacts The government’s second priority behind innovation is education, targeting more skilled science and technology workers to fire GDP growth. Electric vehicles, hydrogen, new materials, pharmaceuticals, biomanufacturing and artificial intelligence (AI) will get policy support. Central government will take more control of local government spending, which may aid both policy prioritisation and financial stability. The 3% inflation target is likely over-optimistic; pork prices are in a cyclical downturn while home and rental costs will keep falling. Officials did not announce any new property market measures, increasing the likelihood that it will continue to contract well into 2025.