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China has announced a raft of measures to resuscitate a

 even as the country's new premier warns its legions of bureaucrats to gird themselves for a period of fiscal austerity ahead. 

"Governments at every level must get used to keeping their belts tightened and ensure that fiscal funds are used where they are needed most and to the best effect," 

 at annual legislative meetings being held in Beijing this week. 

He said China is aiming for "around 5%" economic growth for this coming year, in line with previous years.

 record high youth unemployment, a cratering property and consumer market, and stricter security and debt-related regulation that 

 a complete recovery from three years of COVID controls 

To do so, China has set a target to create 12 million new urban jobs and keep the urban unemployment rate to 5.5%. After months of resisting any substantive financial stimulus, China will also issue 1 trillion renminbi ($139 billion) worth of "ultra-long-term special treasury bonds" to raise capital that will go toward funding shortages and advancing projects in the national interest. 

The premier also said China would drop more restrictions on foreign investment into the country and "completely scrap" ceilings on foreign investment in the manufacturing sector, but did not provide more concrete details on the restrictions that would be eased. Last year, 

Despite slowing growth, however, China has signaled it is not backing down from 

, and pivoting instead to technology sectors it sees as key to its national interests, even if the shift cuts into immediate economic growth.

China's finance ministry also announced the country's defense budget would increase by 7.2% over the coming year, a jump roughly in line with previous years. 

China has the world's second-largest defense budget, behind the U.S. But China has been dramatically increasing military funding and investment in new defense technologies over the past decade and

that Beijing's military capabilities, especially in the digital realm and drone warfare, 

"We in governments at all levels will provide strong support to the development of national defense and the armed forces," premier Li said.

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Emily Feng

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The country's premier announces a round of fiscal stimulus to boost employment, but warns its legions of bureaucrats to gird themselves for a period of fiscal austerity.

China's leaders announce a push to jumpstart economy, but say it won't be easy

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