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Two Sessions Meeting: The key targets

iconMar 6, 2021 14:24
SMM has put together some key changes of the key targets from the latest China government work report.

SHANGHAI, Mar 6 (SMM) — China's national legislature opened its annual session Friday morning in Beijing. Xi Jinping and other Chinese leaders Li Keqiang, Wang Yang, Wang Huning, Zhao Leji, Han Zheng and Wang Qishan attended the opening meeting of the fourth session of the 13th National People's Congress (NPC) in Beijing. Premier Li Keqiang delivered a government work report on behalf of the State Council to the legislature for deliberation.

This year's government work report has some differences from previous years, such as GDP targets, tax cuts, and various work arrangements for carbon neutrality and carbon peaking. In response to a number of experts’ opinions and interpretation reports, SMM has put together some changes to the key targets over the past 3 years.

Government work report : key targets
Index 2019 target 2020 target 2021 target
GDP 6-6.5% no specific target above 6%
CPI around 3% around 3.5% around 3%
Balance of Payments balanced balanced balanced

New jobs in cities and towns

> 11 million people > 9 million people > 11 million people

Urban registered unemployment rate

around 4.5% around 5.5% around 5.5%

Tax cuts

2 trillion yuan annual plan to reduce the burden of enterprises by more than 2.5 trillion yuan increase the value-added tax increase point for small-scale taxpayers from monthly sales of 100,000 yuan to 150,000 yuan

Fiscal deficit

2.76 trillion yuan 1 trillion yuan more than in 2019 NA

Fiscal deficit rate

2.8% 3.6% 3.2%

Special debt

2.15 trillion yuan 3.75 trillion yuan 3.65 trillion yuan

Broad money supply/social financing balance growth

Basically match the nominal economic growth rate Significantly higher than last year Basically match the nominal economic growth rate

Carbon peak/carbon neutral

NA NA Formulate a carbon peak action plan by 2030

Newly started reconstruction of shanty towns

Shed reform of 6.20 million units 39,000 units 53,000 units

China aims to expand its economy by over 6 percent in 2021, building on strong tailwind from success in containing COVID-19, as lawmakers gather in Beijing to map out priorities for high-quality development.

The gross domestic product (GDP) target is one of the many key goals laid out in a government work report delivered by Premier Li Keqiang to the national legislature, which began its annual session Friday.

"In setting this target, we have taken into account the recovery of economic activity," Li said. "A target of over 6 percent will enable all of us to devote full energy to promoting reform, innovation, and high-quality development."

China aims to create more than 11 million new urban jobs, lower the deficit-to-GDP ratio to 3.2 percent, and expand domestic demand and effective investment, which are expected to put the economy firmly back to pre-pandemic vibrancy -- China's GDP growth rate was 6 percent in 2019.

China policies
Two Sessions

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

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