China Outlines Plan to Stabilize Economy in Crucial Year for Xi

China's premier, Li Keqiang, on Saturday announced a target for the country's economy to expand this year.

The goal was laid out by the premier in his annual policy speech at the opening of the legislature. The target appeared to be aimed at maintaining political and economic stability as the leader of China looks to get another five-year term in power.

In our work this year, we must make economic stability our top priority and pursue progress while ensuring stability, Mr. Li said.

The growth goal suggests that China values economic growth over output. Beijing has been trying to shift the economy away from its dependence on infrastructure investments and towards a more sustainable reliance on domestic consumption.

Mr. Li said that the Chinese economy would face challenges this year due to the sluggish recovery of consumption and investment, as well as a shortage of resources and raw materials.

Western economists have predicted that the Chinese economy can only grow by increasing its borrowing and spending.

The budget issued by Mr. Li called for extra spending and the issuance of more bonds to pay for it.

The central government, which has relatively little debt, will increase its transfers of money to provincial and local governments this year. The increase last year was 7.8 percent. Much of China's social spending and infrastructure construction is carried out by the provincial and local governments.

Heavy spending to help rural families and to build more rental housing is included in the budget.

The Chinese economy is showing signs of slowing down. Spending at hotels and restaurants has been affected by travel restrictions and the coronaviruses epidemic.

China's huge construction industry is stalling as home buyers turn wary, with developers beginning to default on debts. Local governments are more cautious about building additional roads and bridges because of thewindling revenue from land sales.

In January, the government said that growth last year was 8.1 percent. The economy grew only 4% by the last three months of last year.

The Chinese premier's annual work reports generally avoid new announcements on foreign policy, and this year's report was no exception. Mr. Li did not mention the invasion of Ukraine by Russia. Beijing tried to distance itself from Putin's decision to go to war.

Mr. Li said that China will continue to pursue an independent foreign policy of peace, stay on the path of peaceful development, and work for a new type of international relations.

Mr. Li said that the government would speed up the modernization of the military and build asset management systems.

Chris Buckley reported from Australia. Three people contributed research.