China Sets Solid Economic Growth Goals for 2021, Narrowing Gap With the US

By Thomas Price Friday, March 5, 2021

While nearly all international economies have shrunk during the COVID-19 pandemic and businesses and companies still find it difficult to maintain sales and stay open safely, China is one of the few countries that reported modest growth. The nation plans to energize that growth to a much larger extent in 2021, pushing for a significant jump in its GDP while also creating millions of jobs supported by new or expanding businesses. The country also announced new environmental policies to reach climate goals, though many remain skeptical considering the strength of the coal business across the nation.

The Chinese flag over yuan banknotes.

China’s Plans for Economic Growth in 2021

In the annual Two Sessions political gathering, Chinese Premier, Li Kequiang announced the lofty intention of the country growing its economy by 6% in the 2021 fiscal year. This ambitious plan will be built on companies and the government creating 11 million new jobs over the course of the year as well as efforts to maintain consumer spending habits after a dip last year.

Despite the COVID-19 pandemic hurting all global economies as the widespread effects stretched across nearly every aspect of business, China still managed to grow during the 2020 fiscal year. In fact, the nation’s economy grew by 2.3%, setting the country apart as the only major nation to see economic growth in the year, despite how modest it was.

However, one of the major challenges still facing China in 2021 is boosting consumer spending after watching retail spending drop by 3.9% last year, putting companies within the industry in jeopardy.

At the same time, bad loans and poor financial actions have to be curbed as well, with companies and firms run by the state defaulting on their loans at a higher rate than ever before. In fact, the $15.5 billion worth of defaulted loans from state firms and companies represents a 220% surge from 2019, marking a concerning trend for China. Despite this trend, business looks to continue to see growth moving into the 2021 fiscal year.

China’s Environmental Goals

In an effort to help curb carbon emissions, China also announced a cut in energy intensity of 3%. This will play into the longer-term goals of the country to lower energy intensity by 13.5% and carbon intensity by 18% over the course of the next five years. Unfortunately, the coal business remains the largest place of energy for the country, casting doubts on the ability for China to reach carbon neutrality by 2060.

China will also be creating major ecological fields in order to protect important environmental regions from emissions and waste created by different businesses and companies nearby.

About the Author

Headshot of Thomas Price

Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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