An employee of an engine manufacturer works on a production line in Tangshan, Hebei province. (PROVIDED TO CHINA DAILY)

BEIJING - China will focus on stabilizing its economic fundamentals this year, setting its GDP growth target at around 5.5 percent, Premier Li Keqiang said on Saturday, as the world's second-largest economy beefs up supportive measures to shore up growth against possible strong headwinds.

In a draft government work report delivered at the opening of the fifth session of the 13th National People's Congress, Li said the fundamentals of China's economy remain unchanged, and they will maintain long-term growth.

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China boasts multiple favorable conditions for sustained development, including huge potential for starting businesses and engaging in innovation, and has accumulated rich experience in handling major risks and challenges.

Chinese Premier Li Keqiang delivers a government work report at the opening meeting of the fifth session of the 13th National People's Congress at the Great Hall of the People in Beijing, capital of China, March 5, 2022. (PHOTO/XINHUA)

There is no doubt that China's economy will withstand any downward pressure and continue growing steadily long into the future.

There is no doubt that China's economy will withstand any downward pressure and continue growing steadily long into the future, according to the government work report

Main targets accomplished 

China has accomplished the main targets and tasks for last year and got the 14th Five-Year Plan (2021-2025) off to a good start, according to the government work report.

Last year, China's gross domestic product grew 8.1 percent year-on-year to reach 114 trillion yuan (about $18 trillion), while national fiscal revenue exceeded 20 trillion yuan, according to the report.

Major advances were registered in research on core technologies in key fields. Breakthroughs were made in manned spaceflight, Mars exploration, resource exploration, energy projects and other areas.

For the year 2022, the nation will strive to create at least 11 million jobs in the urban areas and maintain surveyed urban unemployment rate at below 5.5 percent.

Li said that the government has set its inflation target at around 3 percent for 2022, and the ratio of its deficit to gross domestic product at around 2.8 percent for 2022, slightly lower than last year. 

China has set its inflation target at around 3 percent for 2022, and the ratio of its deficit to gross domestic product at around 2.8 percent, slightly lower than last year

The special-purpose bonds for local government will total 3.65 trillion yuan ($1 trillion).

Prudent monetary policy

Li pledged to step up implementation of the prudent monetary policy, saying the government will expand the scale of new loans and keep the macro leverage level generally stable.

The exchange rate of the yuan will be maintained generally stable at an adaptive, balanced level, he added.

The premier announced a new package of tax refunds and cuts totaling 2.5 billion yuan this year to support enterprises, including a temporary exemption on value-added tax payments to small taxpayers and an additional measure to halve the cooperate income tax for micro and small businesses with an annual taxable income of 1 million to 3 million yuan.

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Cargos are unloaded from a container ship at the container terminal of the Lianyungang Port in East China's Jiangsu province, on Jan 14, 2021. (PHOTO / XINHUA)

The government will also take stronger action against monopolies and unfair competition to ensure a well-ordered and fair market environment.

Stabilizing foreign trade

China will adopt a package of steps to stabilize foreign trade, and will help foreign trade enterprises receive orders and maintain production, Li said.

China will actively increase imports of quality products and services, and explore new ways to develop trade in services and digital trade

The government will move faster to develop new forms and models of foreign trade, give full play to the role of cross-border e-commerce, and support the establishment of a number of overseas warehouses, said the report.

Li also said China will actively increase imports of quality products and services, and explore new ways to develop trade in services and digital trade.

The building of an international logistic services system will be accelerated to help lower costs and raise efficiency in foreign trade, according to the report.  

This Aug 13, 2019 photo shows wind turbines amid blooming sunflowers in Sitan Township of Jingtai County in Baiyin, northwest China's Gansu province. (NIE JIANJIANG / XINHUA)

Improving livelihood

Care expenses for children under three will be included in the special additional deductions for individual income tax

With over 10 million college graduates this year, Li said the government will provide them with stronger policy support and uninterrupted services to ensure that they can find jobs or start businesses.

The investment from the central government budget will reach 640 billion yuan this year, and the government will make improving the people's well-being an investment priority, he said.

The nation will improve measures for the three-child policy. Care expenses for children under three will be included in the special additional deductions for individual income tax, Li said. 

A volunteer shows a sick child the art of paper-cutting at a school in a hospital in the capital. (PHOTO PROVIDED TO CHINA DAILY)

The country will develop public-interest childcare services to ease the burden of raising a family, the report said.  

Li said the government will continue to uphold the principle that houses are for living in, not for speculation, and keep land costs, housing prices and market expectations stable

For housing, Li said the government will continue to uphold the principle that houses are for living in, not for speculation, and keep land costs, housing prices and market expectations stable.

China will continue to improve the environment and promote green and low-carbon development. The country will work harder to address pollution and protect and restore ecosystems, Li said.

The nation will boost agricultural production and promote all-round rural revitalization to ensure stable production and sufficient supply of grain and other important agricultural products.

Enhancing military training

The premier said China will enhance military training and combat readiness, stay firm and flexible in carrying out military struggle, and safeguard China's sovereignty, security and development interests.

He said China stands ready to work with all others in the international community to make new and greater contributions to promoting world peace, stability, development and prosperity.

Xu Wei contributed to this report