BEIJING — One year after China was battered by the coronavirus, the government promised on Friday a robust return to economic growth of “over 6 percent,” a signal that China is ready to do what it takes to keep the world’s second-largest economy running strongly.
The commitment is a positive sign for the global economy. It suggests that Beijing is willing to free up money to keep its economy humming rather than slowing down to address its ever-rising tide of debt. That means the Chinese economy will continue to buy much of what the world makes, including iron ore and computer chips.
China’s growth target comes as the virus has been all but halted within its borders, and as the number of cases has fallen steeply in recent weeks in countries like the United States and India.
China’s target for this year may be easy to achieve. It is well below what many Western economists expect the Chinese economy to realize. They have been forecasting an expansion of about 8 percent, as exports of manufactured goods continue to boom while the service sector rebounds from a very weak performance last year.
China’s premier, Li Keqiang, released the goal as he delivered a report on the government’s work to the legislature, the National People’s Congress, at the start of its weeklong annual gathering.
“As the coronavirus continues to spread around the world, instability and uncertainty are mounting on the international landscape, and the global economy continues to face grave challenges,” Mr. Li said.
“Domestically, there are still weak links in our work to control Covid-19,” he added. “The foundation for achieving our country’s economic recovery needs to be further consolidated, impediments to consumer spending remain, and investment growth lacks sustainability.”
The forecast indicates that China expects a striking bounce-back after last year, when the uncertainties of the pandemic led the government to abandon setting an annual growth target for the first time in decades. Ultimately, China recorded growth of 2.3 percent in 2020, much slower than the usual pace of 6 percent or higher in recent years, but by far the best performance of any major economy.
But China’s growth last year was even more unbalanced than usual. The country actually lost ground on its goal of shifting away from its addiction to exports and debt-fueled infrastructure investments and toward a more sustainable reliance on domestic consumption. As in most countries during the pandemic, travel and leisure spending plummeted in China last year.
Mr. Li promised on Friday to step up efforts to boost consumption. “With a focus on improving the people’s well-being, we will expand demand and promote a better alignment between consumption and investment,” he said.
He pledged to cut taxes for the smallest businesses, many of which are tiny shops in towns and villages. But infrastructure spending will continue at a very fast pace. Mr. Li announced only a token cut — 2.7 percent — in the issuance this year of special-purpose bonds, which are mostly used to pay for infrastructure projects and had nearly tripled in the past two years.
While China has sought to steady relations with the United States, Mr. Li signaled that Beijing was taking a harder line on Hong Kong and Taiwan — two potential flash points with Washington.
“We will resolutely guard against and deter external forces’ interference in the affairs of Hong Kong,” Mr. Li said.
The congress is poised to deepen China’s clampdown in Hong Kong, building on a national security law that Beijing imposed on the city last year. This year, the delegates are set to approve a proposal that would drastically shrink democratic competition in local elections in the former British colony.
The Chinese government has also taken an increasingly tough line over Taiwan — the democratically governed island that Beijing claims as its territory — and Mr. Li’s language appeared harsher than in previous work reports. The current president of Taiwan, Tsai Ing-wen, has resisted Beijing’s demands to accept the mainland’s definition of the island’s status.
“We will remain highly vigilant against and resolutely deter any separatist activity seeking ‘Taiwan Independence’,” Mr. Li said.
