China aims for growth “of about 5%” and beefs up its military spending for 2023

China unveiled a growth target of“about 5%” for 2023, at the opening of its annual parliamentary session, which should offer an unprecedented third presidential term to Xi Jinping, within a few days. After three years of slowdown due to anti-Covid restrictions, “China’s economy is enjoying a solid recovery”underlined the report of the outgoing Prime Minister, Li Keqiang, presented to 3,000 deputies of the National People’s Congress (ANP).

It is, however, one of the weakest targets in decades. In 2022, China’s GDP had grown by just 3%, one of the weakest increases in 40 years, against the backdrop of an economic slowdown, the Covid-19 epidemic, confinements and a crisis in real estate.

The reinforced military budget

“China’s economic development has come up against multiple unexpected factors both at home and abroad, such as the epidemic.”, acknowledged Sunday Li Keqiang. But “under the strong leadership of the Party Central Committee, we have effectively coordinated epidemic prevention and control and economic and social development”he added.

The country also announced that its military budget, the second in the world after that of the United States, will increase by 7.2% in 2023, a slight acceleration compared to last year. This growth rate, higher than in 2022 (it was +7.1%) was announced in a report by the Ministry of Finance published on the sidelines of the annual session of Parliament. Beijing plans to spend 1.553.7 billion yuan ($225 billion) on defense – which is still about three times less than Washington’s budget.

The increase in the Chinese defense budget remains below 10% for the eighth consecutive year. But it arouses the mistrust of neighboring countries having territorial disputes with China. Senior American officials have recently accused China of wanting to invade Taiwan, the island it claims, within a few years, or of having a “fleet” of military balloons spying on the whole world.