China Eyes 5% Growth, Raises Defense Budget

China set an ambitious annual growth target of around 5% on Wednesday, vowing to make domestic demand its main economic driver as an escalating trade war with the United States hit exports.

- Agencies

BEIJING:

China also said it will increase its defense budget 7.2% this year, as it continues its campaign to build a larger, more modern military to assert its territorial claims and challenge the US defense lead in Asia.

Beijing also announced a rare hike in fiscal funding, allowing its budget deficit to reach 4% this year as it battles stuttering employment for young people, stubbornly low consumer demand, and a persistent property sector debt crisis.