China's national legislature opens annual session

China's National People's Congress (NPC), the country's highest organ of state power, on Wednesday started its annual session, with a string of confidence-boosting development goals unveiled, including an economic growth target of around 5 percent for 2025.

Nearly 3,000 deputies attended the third session of the 14th NPC, held at the Great Hall of the People in Beijing.

Chinese President Xi Jinping and other leaders including Li Qiang, Wang Huning, Cai Qi, Ding Xuexiang, Li Xi and Han Zheng, and members of the session's presidium, were seated at the rostrum.

Zhao Leji, executive chairman of the session's presidium, presided over the meeting.

Chinese Premier Li Qiang delivered a government work report. 　　 Reviewing the work of 2024, he said that in the face of the complex and grave situation marked by mounting external pressures and growing domestic difficulties, China has accomplished the main goals and tasks for economic and social development.

Solid headway was made in pursuing high-quality development and fostering new quality productive forces. China's economic strength, scientific and technological capabilities, and composite national strength continued to rise, and solid new strides were made in advancing Chinese modernization. These achievements have filled the nation with even greater confidence and resolve as it presses forward on the new journey to build a modern socialist country in all respects in the new era, said Li.

Over the past year, the government took more robust and innovative measures in conducting macro regulation in light of evolving conditions and promoted economic recovery and growth. It deepened reform and opening up comprehensively with unswerving commitment and boosted the internal momentum of development. It made major efforts to promote innovation-driven development and upgraded the industrial structure. It advanced coordinated development between urban and rural areas and between different regions and improved the economic layout. It actively developed social programs and improved the people's wellbeing. It continued to strengthen environmental protection and promoted green and low-carbon development. It also enhanced government performance and governance innovation and ensured social harmony and stability, Li said in the report. 　　 The premier pointed out that while recognizing the country's achievements, the government is keenly aware of the problems and challenges that confront it.

Noting that 2025 is the final year for implementing the 14th Five-Year Plan (2021-2025), the premier said China targets economic growth of around 5 percent this year.

The country has set the target for its surveyed urban unemployment rate at around 5.5 percent, and plans to create over 12 million new urban jobs in 2025, and targets an annual increase in the consumer price index of around 2 percent, he said.

The country also aims to keep residents' income growth in step with economic growth, maintain a basic equilibrium in the balance of payments, achieve grain output of around 700 million metric tons, targets a drop of around 3 percent in energy consumption per unit of GDP, and strive for continued improvements in the ecological environment quality, according to Li.

Noting that China faces formidable tasks in economic and social development, Li said the country should focus on major priorities and key links and strive to deliver a good performance in several areas, including vigorously boosting consumption, accelerating the development of a modernized industrial system, accelerating the implementation of landmark reform measures, expanding high-standard opening up, and stabilizing foreign trade and investment.

He also elaborated on work related to improving government performance, ethnic and religious affairs, overseas Chinese affairs, national defense and military development, the development of Hong Kong and Macao, cross-Strait relations, and China's foreign policies.

"Confidence builds strength, and hard work creates glorious achievements. Let us rally more closely around the CPC Central Committee with Comrade Xi Jinping at its core, hold high the great banner of socialism with Chinese characteristics, and follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Let us meet difficulties head-on and forge ahead with resolve to accomplish this year’s objectives and tasks for economic and social development and bring the 14th Five-Year Plan to a successful conclusion. Let us strive to build a great country and advance national rejuvenation on all fronts through Chinese modernization," Li said as he concluded the report. 　　 At Wednesday's meeting, NPC deputies reviewed a report from the State Council on the implementation of the 2024 plan for national economic and social development and on the 2025 draft plan, as well as the draft plan for national economic and social development in 2025.

They also reviewed a report from the State Council on the execution of the central and local budgets for 2024 and on the draft central and local budgets for 2025, as well as the draft central and local budgets for 2025.

Li Hongzhong, vice chairman of the NPC Standing Committee, explained a draft amendment to the Law on Deputies to the National People's Congress and to the Local People's Congresses at Various Levels.

The law amendment is necessary for developing whole-process people's democracy and ensuring that people's congresses and their standing committees at all levels maintain close ties with the people, according to the explanation.

China's national legislature opens annual session

China's national legislature opens annual session

China's national legislature opens annual session

China's national legislature opens annual session

China's national legislature opens annual session

Escalating tensions in the Strait of Hormuz are sending shockwaves through Gulf economies, driving up energy prices, disrupting shipping and straining supply chains.

The current crisis along the Strait of Hormuz came as part of Iran's response to U.S.-Israeli military strikes.

On Feb 28, Israel and the United States launched joint attacks on Tehran and several other Iranian cities, killing Iran's then Supreme Leader Ali Khamenei, along with senior military commanders and civilians.

Iran responded with waves of missile and drone strikes targeting Israel and U.S. assets in the Middle East as well as navigation restriction through the Strait of Hormuz.

As the war drags on, Iran has been leveraging its grip on the waterway, reducing shipping traffic to historical lows as concerns about the wider global economic impact continue to mount.

The narrow waterway carries nearly one‑fifth of the world's oil supply, and analysts warn the worst may be yet to come.

In the United Arab Emirates, already affected by spillover from the conflict, gasoline prices were raised by about 30 percent from the beginning of April, while diesel prices surged approximately 72 percent.

"Anyway, the UAE, for example, produces oil, so it shouldn't be affected as much as countries that are importing oil. But then there is also this global deal that even local prices should be reflecting somehow the global market. Asian countries and European countries are being more affected than the U.S.," said Farah Mourad, senior market analyst of IG Group in Dubai.

Disruptions to shipping are also rippling through global agriculture, with fertilizer costs soaring and transport blocked. Nearly half of the world's urea and large volumes of other fertilizers are exported from Gulf countries through the Strait of Hormuz. Prolonged instability could severely impact spring plowing in the Northern Hemisphere, driving up global agricultural costs and food prices.

The Strait of Hormuz transit has remained "at a near halt" over the past month, with maritime traffic falling by about 95 percent since the U.S.-Israel-Iran conflict, according to the UN Trade and Development (UNCTAD). The agency warned the standstill is disrupting energy shipments, slowing global trade growth, and could fuel inflation through higher energy prices and living costs.

"There are different layers of impact, and the clearest one is energy prices going up. So anything that needs energy, for (example), agriculture will be going up. But then again, we have fertilizer prices, anything being affected by a closure of the supply chain, pressure on supply chains is already being clear at the moment. Higher prices when it comes to insurance for transportation, from the moment you produce until the moment the buyer gets it. So these are energy prices along the way. But we still believe it might be the beginning of this pivot towards these commodities," said Mourad.

A recent report by the United Nations Development Programme warned that escalation of the conflict in the Middle East could cost Arab countries between 120 billion and 194 billion U.S. dollars. It projected 3.6 million job losses, an increase in regional unemployment of up to 4 percentage points, and more than 4 million people pushed into poverty.

Goldman Sachs earlier estimated that if the conflict continues through the end of April, the GDP of Saudi Arabia and the UAE could contract by 3 to 5 percent this year.

"Obviously, there are negatives, we saw in luxury, we saw airlines, we saw services. These will most probably suffer or continue to suffer some pressure. One of the most affected sectors is aviation. We're seeing lower flights, especially linked to this region because this region is a hub, it's a transit route. But then also because of higher oil prices and energy prices," said Mourad.

Analysts say the crisis has exposed the Gulf’s heavy reliance on the Strait of Hormuz as its only maritime outlet. In the longer term, they warn the conflict could push Gulf states to speed up construction of overland oil pipelines, railways and road networks to reduce dependence on the strategic waterway.

Strait of Hormuz tensions weigh heavily on Gulf economies: analyst