Major Chinese Cities Including Shanghai Aim for 6% Economic Growth Rate This Year

6% in Beijing, Shanghai, Guangdong Province, etc. in China... Western regions aim for over 8%
Chinese government unlikely to disclose targets this year... COVID-19 risk remains

[Asia Economy Beijing=Special Correspondent Jo Young-shin] As major provinces and cities such as Beijing and Shanghai in China prepare to announce their economic growth targets ahead of the March Two Sessions (National People's Congress and Chinese People's Political Consultative Conference), attention is focused on whether the Chinese leadership will present this year's economic growth target. Chinese economic experts express optimistic views on China's economic growth this year but caution that uncertainties remain high and vigilance is necessary.

According to the state-run Global Times on the 25th, the economic growth rate targets for this year set by major cities and provinces symbolizing China's economic growth, such as Beijing, Shanghai, and Guangdong Province, are in the 6% range. This figure is about 2 percentage points lower than the forecast that China's economic growth will reach the 8% range.

The Global Times reported that ahead of the Two Sessions, scheduled for March 5, major cities establish their own economic targets and report them to the Two Sessions, noting that the economic growth targets of key regions such as Beijing, Shanghai, and Guangdong (Shenzhen) are relatively lower compared to western regions of China.

The outlet stated that the Tibet Autonomous Region aims for over 9%, northern Shanxi Province over 8%, and Hebei Province over 10%.

Dong Dengxin, Director of the Finance and Securities Research Institute at Wuhan University of Science and Technology, said, "The economic growth targets of major cities and provinces are numbers that provide insight into the Chinese economy," adding, "There are signs of a continuous economic recovery."

Tian Yun, Vice Chairman of the Beijing Economic Operation Association, regarding the significant regional differences, said, "There is no doubt that economic recovery will continue this year," but added, "Considering the ongoing risks of COVID-19, trade uncertainties due to Sino-US conflicts, and environmental issues such as green growth, the targets were likely set conservatively."

He pointed out, "Major overseas research and survey institutions such as the World Bank forecast China's economic growth rate this year to be between 7.9% and 8.5%, but the pandemic could exert pressure on employment and consumption, among other impacts."

The Global Times cited experts saying that the western and northern regions of China have relatively lower risks of COVID-19 spread and are underdeveloped, making high economic growth possible this year.

There is also keen interest in whether the Chinese leadership will disclose this year's economic growth target after the conclusion of the Two Sessions.

The Chinese leadership did not disclose last year's economic growth target. Due to COVID-19, the Two Sessions were postponed by about two months, and the uncertainty was too great to announce a target.

Vice Chairman Tian added, "China's economic growth rate could reach 8.5% this year, but it is uncertain whether the government will officially announce a growth target."