Yicai:

The Report on the Work of the Government has set this year's economic growth target at around 5%, which is higher than some institutional forecasts. What factors were taken into consideration when setting this target? And is the target achievable? Thank you.

Shen Danyang:

I will answer this question. The economic growth target of around 5% for this year was set after extensive research and careful deliberation. Prior to setting the target, the State Council dispatched numerous research teams across the country to conduct field research and gather feedback from relevant departments, experts, scholars and enterprises. The target was formulated based on a thorough assessment of both domestic and international conditions and various factors, striking a balance between necessity and feasibility. The target may be higher than the forecasts of some foreign institutions. But as we all know, any economic forecast is a projection based on certain assumptions, and the results are likely to change in response to environmental conditions, macro policies and reform measures — this has happened before. Based on China's development experience and global practices, achieving a development goal depends on three key factors: development momentum, available capabilities and conditions and supportive policies. Taking all these factors into account, we are very confident that this year's growth target can be achieved.

First, the positive momentum of China's economic recovery continues to strengthen and expand. While uncertainties persist in the international environment, and these factors continue to evolve, we have always emphasized that the key is to focus on our own affairs. Since the Political Bureau of the CPC Central Committee announced a package of incremental policies at a meeting on Sept. 26 last year, China's economy has shown a clear rebound. In Q2, GDP growth was 4.7%, in Q3 it was 4.6%, and in Q4 it was 5.4%, successfully achieving the annual growth target of around 5%. This momentum is highly encouraging. So, what about the situation this year? The rapid development of technology in China, particularly in artificial intelligence (AI), has captured global attention. The cultural and tourism sectors have thrived, especially during the Spring Festival, where consumption exceeded expectations. Recently, Chinese asset prices have steadily rebounded, and business confidence continues to grow. Since the beginning of this year, key economic indicators, such as the manufacturing purchasing managers' index (PMI), real estate sales and container throughput, further validate the stable growth momentum of China's economy.

Second, China has accumulated many favorable conditions for economic development. Most domestic and international research institutions agree that China still holds significant development potential, with a relatively high potential growth rate of around 5%. In recent years, new industries and growth drivers have been expanding rapidly. Sectors such as new energy vehicles (NEVs), photovoltaics and shipbuilding are now globally leading, while AI-related industries have seen explosive growth. These developments are injecting powerful new momentum into China's economic expansion. Previous negative factors, such as the real estate sector, are now showing positive changes, and their drag on growth is gradually diminishing. Even more promising is that as the reform measures outlined in the third plenary session of the 20th CPC Central Committee are implemented, the intrinsic momentum and vitality of economic development will be further unleashed.

Third, macroeconomic policies and policy measures are providing solid support. We have intensified efforts to implement a comprehensive package of both new and existing policies, ensuring their sustained effectiveness. Notably, the more proactive and effective macro policy mix being implemented this year, which is unprecedented in recent years, offers strong policy backing for economic growth. Furthermore, macroeconomic policies still have room for further adjustments and will be dynamically fine-tuned to respond to changing circumstances.

In conclusion, setting a growth target of around 5% is in line with China's current realities and the laws of economic development, making it an achievable goal. However, achieving this target will not be easy and will demand considerable effort. Thank you.