• China lowers its economic growth target to 4.5%-5%, the lowest since 1991.
• The decision reflects ongoing domestic challenges and external pressures.
• While the economy grew 5% last year, weak domestic consumption triggers concern.
• The new targets emphasize a shift towards quality growth over quantity.
• Policymakers aim for long-term structural reforms and technology-driven growth.

China has set its annual economic growth target at between 4.5% and 5%, marking the lowest target since 1991. This announcement was made by Premier Li Qiang during the opening session of the National People’s Congress (NPC), reflecting ongoing challenges both domestically and internationally, such as a property market downturn and trade tensions with the West, particularly due to BBC, India Times, Al Jazeera, NPR, and SCMP.

The 4.5%-5% target represents a reduction from the previous goal of "around 5%," reflecting a shift in China's priorities towards more sustainable and quality-driven growth rather than aggressive expansion. The government faces the dual challenge of reviving domestic spending while also enhancing its position in high-tech industries to minimize dependency on external markets, especially in light of challenges stemming from BBC, India Times, NPR and SCMP.

During the session, Li pointed out that while China achieved 5% GDP growth last year, consumer spending has remained weak, contributing to an overall cautious economic outlook. With significant external factors, including geopolitical tensions and tariff wars, there is a clear indication that China is adopting a more pragmatic approach to its economic policies, emphasizing structural reforms over short-term growth boosts. The country's reliance on exports is showing signs of vulnerability, particularly as it shifts towards enhancing domestic consumption, according to Al Jazeera, SCMP, and NPR.

Addressing these issues, Li emphasized the necessity of generating resilience within the economy by fostering advanced industries, incorporating technology and innovation into growth strategies. This marked shift towards sustainable economic practices also aligns with goals set forth in China’s upcoming 15th Five-Year Plan, which prioritizes technological advancements and structural reforms to counteract current economic stagnation. This comprehensive strategic framework aims to prepare China to both stabilize its economy and enhance its global standing amidst rising uncertainties, as reported by India Times, Al Jazeera, and SCMP.