The Chinese government has set a modest 5% economic growth goal for 2021, according to The Wall Street Journal, marking the lowest annual growth expectation in more than 25 years. This goal reflects the lingering effects of President Xi Jinping's aggressive COVID-19 lockdowns and the subsequent protests from Chinese citizens.
The Chinese budget increase follows a year of unprecedented tension between China and the U.S. and Taiwan. Last month, CIA Director William Burns stated that Chinese President Xi Jinping has ordered his military to be ready to invade Taiwan by 2027. In response, the U.S. has already delivered hundreds of millions of dollars worth of military aid to Taiwan.
The economic growth goal and budget increase of China appears to be a response to the increasing tension between the two countries. It remains to be seen what the long-term impacts of this tension will be, both economically and politically. For now, the Chinese government is hoping that its modest economic growth goal will help offset the effects of its aggressive COVID-19 lockdowns and protests.