China says economy got a strong start in 2024, sets sights on latest technology, upgrading factories

BEIJING (AP) — China has plenty of room to maneuver to attain its annual target for robust economic growth of about 5% after a strong start for the year, top economic officials said Wednesday, though they acknowledged it’s a challenge.

China’s exports rose about 10% in the first two months of the year from a year earlier, while medium- and long-term loans from banks jumped more than 30%, said China’s top planning official, Zheng Shanjie, who heads the National Development and Reform Commission.

Zheng said the priority will be on “supporting scientific and technological innovation, integrated development of urban and rural regions, food security and energy security, among other areas.”

“The potential construction demand in these areas is huge and the investment cycle is long. It’s hard to fully meet needs using existing funding channels and there’s an urgent need to increase support,” he said at a news conference on the sidelines of the National People’s Congress, China’s ceremonial legislature.

Premier Li Qiang announced the “around 5%” growth target for the year Tuesday at the opening of the congress, which runs for about a week and mostly just endorses policies set by top leaders of the ruling Communist Party.

China’s economy, the world’s second largest, grew at a 5.2% pace in 2023, but that was from a relatively low pace since it expanded only 3% the year before, one of the lowest rates since the 1970s. Growth of around 5% would be cause for rejoicing in the U.S. and other major economies, but it’s moderate for a developing economy with a huge population like China’s.

Pan Gongsheng, the head of China’s central bank, and the other senior economic planners speaking on the sidelines of the congress said Beijing has