China on Saturday announced a growth target for the country's economy of "around 5.5%" in 2022, with a plan to stabilize the economy amid the global turmoil over the Ukraine crisis, Hong Kong's worst fifth Covid-19 wave and the impending crucial leadership overhaul later this year. Country also announced that its defense budget will increase by 7.1 percent to reach over USD 230 billion.<br />''<br />''China's premier, Li Keqiang, announced these targets in his annual policy speech at the opening in Beijing of a weeklong session of China's Communist Party-controlled legislature, the National People's Congress (NPC).<br />''<br />''The target appeared aimed at maintaining political and economic stability as Xi Jinping, China's leader, looks to secure another five-year term in power at the 20th party congress in the second half of 2022.<br />''<br />''China will ensure social and economic stability to pave way for the Communist Party's national congress this year, Li says. "In our work this year, we must make economic stability our top priority and pursue progress while ensuring stability," he added.<br />''<br />''This is the lowest economic growth target in more than 30 years, a sign the housing slump, stringent COVID controls and global risks will continue to curb demand. Due to these reasons, the Chinese economy showed sign of slowdown in the last quarter of 2021.<br />''<br />''The outlook has further deteriorated this year with uncertain geopolitical situation like Ukraine-Russia war. Experts say, it will be a challenging year for the government to achieve this growth target. Premier Li also acknowledged the difficulty, saying "it will take hard effort to achieve such targets".<br />''<br />''Despite 8.1 percent GDP growth last year, China is facing an increasingly "volatile, grave and uncertain" external environment, Li Keqiang said. In pursuing economic development, China is under the "triple pressures" of shrinking demand, disrupted supply and weakening expectations, he said. China plans to create at least 11 million new urban jobs in 2022. The country aims for an urban unemployment rate "within 5.5 percent" for the year, according to the work report.<br />''<br />''China's defense budget will increase by 7.1 percent to 1.45 trillion yuan (US$237 billion), faster than the 6.8% increase in 2021 and 6.6% climb in 2020, according to the government finance report.<br />''<br />''This marks a continuation of the high defense spending by China whose increasingly powerful military is flexing muscles in the Indo-Pacific region amid accusations of intimidating its neighbors. Li calls for "deepening comprehensive combat readiness" from the People's Liberation Army.<br />''<br />''China has the world's second-largest defense budget after the U.S., allowing it to maintain the largest standing military, with 3 million personnel and an arsenal of advanced weaponry, including two aircraft carriers with more on the way, stealth fighters, an advanced missile force and nuclear-powered submarines.<br />''<br />''Premier Li Keqiang said China would "fully implement Xi Jinping's thinking on strengthening the armed forces and the military strategy for the new era and strengthen party leadership and party building in all aspects of the military."<br />''<br />''On Taiwan, which China threatens to annex by force if necessary, Li said, China will "advance peaceful growth of relations across the Taiwan Strait and the reunification of China."<br />''<br />''However, he added, "We firmly oppose any separatist activities seeking Taiwan independence and firmly oppose foreign interference." He said the PLA needs to "carry out military struggles in a resolute and flexible manner" to defend the country's sovereignty, security and development interests.