Two Sessions: A Quick Breakdown of the 2020 Government Work Report

Chinese Premier Li Keqiang delivered the Government Work Report to the third session of the 13th National People's Congress in Beijing on May 22. The report reviewed the government’s work in 2019 and the first few months of 2020, and set main targets and tasks for economic and social development this year, as well as outlined major policies.

Now, let’s look at some of the key points.

China's GDP reached 99.1 trillion yuan, growing by 6.1% in 2019.

Due to the great uncertainty regarding the COVID-19 pandemic and the world economic and trade environment, China has not set a specific economic growth target for 2020. 

China will prioritize stabilizing employment and ensuring people's livelihood this year, aiming to create more than 9 million new urban jobs.

Meanwhile, China will ensure the elimination of poverty among all rural residents living below the current poverty line and in all poor counties this year. 

Good news for foreign investors as China will significantly shorten the negative list for foreign investment, promote higher-standard opening up and stabilize the overall performance of foreign trade and foreign investment. 

China aims to reduce corporate burden by more than 2.5 trillion yuan throughout the year and to improve environment for private sector's development.

The report also noted that although China's economy posted negative growth in the first quarter of this year, it was "a price worth paying" to contain COVID-19 as life is invaluable.

The country will spare no efforts in its regular prevention and control of COVID-19. That includes a plan to issue 1 trillion yuan of government bonds for COVID-19 control.

China will pursue a more proactive and impactful fiscal policy. Deficit-to-GDP ratio this year is projected at more than 3.6%, with a deficit increase of 1 trillion yuan over last year. 

China will work to ensure achieving the development goals of winning the battle against poverty and completing the building of a moderately prosperous society in all respects this year.