Legislators gathered in the Great hall of the people in Beijing, announced the victory of the Chinese people’s Republic over the coronavirus that, in General, has led to the country’s return to normal life. Most of the participants sat shoulder to shoulder, and wore masks except the country’s top leadership, including the President of China XI Jinping and Prime Minister Le Katana. The pandemic coronavirus, the current session was postponed for two months. In addition, it will last a week, and not two as usual.
At the opening of the Chinese Prime Minister Li Keqiang made a keynote report, which was presented to the economic and social objectives facing the country in the coming year. According to him, China will set specific targets for economic growth in 2020. This decision was taken due to the fact that China will face some factors that are “difficult to predict the development due to the large uncertainty of the pandemic COVID-19 and the world economic and trading environment”. It is noted that the lack of specific targets for economic growth will allow the Chinese government to focus more on achieving stability and security in the PRC.
Li Keqiang said that the coronavirus was the “most rapidly spreading, most large-scale and complex emergency case in public health, with which China has faced since the founding of the people’s Republic.” China for the first time this year will release a special Treasury bonds trillion yuan. According to analysts, bonds of local governments can be used mainly to Finance infrastructure projects, while the special Treasury bonds can be used to support firms and regions affected by the outbreak of coronavirus, to subsidies that promote consumption or to enhance the capital structure of small banks.
According to experts, in 2020, given the deterioration of economic growth caused by the pandemic target, the PRC’s GDP is likely to be lower than last year by 6.0-6.5 percent. The second largest economy in the world declined by 6.8% in the first quarter compared to the same period a year earlier. In his report to the Chinese Premier also noted that fiscal policy of the PRC will be more active, and monetary – to be more flexible. Li Keqiang also added that the growth of M2 – a broad measure of the money supply – and total social financing this year will be much higher.
