Ashton Ng

At the National People’s Congress on March 5, Premier Li Qiang presented China’s government work report, which trumpets the country’s achievements over the past year and sets an ambitious agenda for 2024. However, implementing this agenda may prove difficult, especially as China grapples with a range of economic, social, and geopolitical challenges.
On the economic front, the report celebrates China’s 5.2% GDP growth in 2023, but acknowledges that the “foundation for China’s sustained economic recovery and growth is not solid enough,” given weak demand and overcapacity. Although China avoided economic catastrophe in 2023 whilst exiting its strict “zero-COVID” policies, the report acknowledges that “Risks and potential dangers in real estate, local government debt, and small and medium financial institutions were acute in some areas.” For 2024, China targets GDP growth of around 5% and over 12 million new urban jobs. However, the only new measure announced was “ultra-long special treasury bonds” issued over several years, offering one trillion yuan in 2024 for national development. Amid a real estate downturn, sluggish consumer spending, and a slowing global economy, the government seems to have no new ideas to spur domestic demand without resorting to the debt-fueled building sprees of the past.
The report emphasizes scientific and technological innovation—from new energy vehicles to semiconductors and AI—but concedes that China’s capacity in these critical domains “needs to be further improved.” Previous state-led efforts to build up domestic tech champions have yielded mixed results, with tens of billions squandered on unproductive investments. Furthermore, the report’s rhetoric on technological self-reliance portends continued tensions with the West. As both sides pursue decoupling, there are risks of inefficient duplication, trade and investment restrictions, and technological fragmentation.




















