China has unveiled a series of ambitious reforms aimed at bolstering its economy and combatting a decline in the housing market and weakened spending. In a bid to achieve an economic growth rate of around 5%, Chinese Premier Li Qiang outlined measures during the annual meeting of the National People's Congress.

Amid concerns about the reliability of China's financial data, experts have pointed out that achieving 5% growth will be challenging. Elaine Dezenski, Senior Director and Head of the Center on Economic and Financial Power at the Foundation for Defense of Democracies, highlighted the questionable nature of China's economic news and unemployment rates. A record high unemployment rate of 21.3% for individuals aged 16 to 24 has forced the government to suspend records and modify the way youth unemployment is recorded.

Acknowledging the difficulty of the goal, Premier Li emphasized the need for a proactive approach and prudent policies to transform the growth model, make structural adjustments, improve quality, and enhance performance. The reforms aim to boost employment, increase incomes, and mitigate risks.

While officials recognize the significant resistance facing the Chinese economy, there is optimism that achieving 5% growth by the end of the year will help stave off a potential slowdown. Notably, China fell short of its growth targets in 2022, achieving only 3% due to the impact of zero-COVID policies on economic activity. With the end of these policies, there is hope for a rebound in growth.

The International Monetary Fund projects China's growth to reach 4.2% in 2024, slightly lower than previous forecasts made in July 2023. Investment in property development witnessed a decline of 7.9% in the first half of 2023 compared to the previous year.

Elaine Dezenski expressed concerns about China's economy, citing slowing global growth, weak domestic consumer demand, high youth unemployment, and fragility in the property sector. She suggested that increasing exports might be one way for China to address its sluggish economy, but it may not be sufficient to overcome the major obstacles it faces. Moreover, such a move could create new risks for China's major export markets in the United States and Europe.

The general economic slowdown has prompted doubts about China's ability to overtake the United States as the world's largest economy. Previous expectations estimated that China would achieve this milestone by the 2030s, but now experts question if it will happen at all.

Premier Li emphasized China's intention to tackle industrial overcapacity, allocate more resources for technology innovation and advanced manufacturing, and align with President Xi Jinping's vision for "new productive forces."

As China forges ahead with these ambitious reforms, all eyes will be on whether they can revive their economy in the face of prevailing challenges and achieve the desired growth rate of 5%.