Lintao Zhang | Getty Images News | Getty Images
Chinese Premier Li Keqiang speaks at a press conference in the Great Hall of the People on January 31, 2018 in Beijing, China.
China must be prepared for a "tough struggle" as the country faces a "grave and more complicated environment," Premier Li Keqiang said at the opening of the annual National People's Congress on Tuesday, the country's annual parliamentary meeting.
"We must be fully prepared for a tough struggle," Li told a delegation of nearly 3,000 representatives. "The difficulties we face must not be underestimated, our confidence must not be weakened, and the energy we bring to our work must not be allowed to wane."
In prepared remarks, according to an official English handout, he warned that there will be greater risks ahead for the world's second largest economy.
"A full analysis of developments in and outside China shows that in pursuing development this year, we will face a graver and more complicated environment as well as risks and challenges, foreseeable and otherwise, that are greater in number and size," Li said.
Beijing also announced it expects the economy to grow at a slower pace in 2019 than last year. Premier Li said the official economic growth target this year will be 6.0 to 6.5 percent, in line with many economists' expectations. China reported GDP growth of 6.6 percent in 2018, the slowest pace since 1990.
The gathering of delegates from different strata of Chinese society is typically ceremonial in nature. The real power in the country lies in the Communist Party and its Politburo Standing Committee, headed right now by President Xi Jinping. But announcements made during the congress can shed some light on government policy.
Li also warned that U.S.-China trade tensions have had a negative impact on business activities in China. Trade tensions with the U.S., China's largest trading partner, have pressured growth in the world's second largest economy and spooked global markets.
Washington and Beijing have been embroiled in a months-long trade war that saw the world's two largest economies slap tariffs on each other's imports. The U.S. has placed duties on $250 billion worth of Chinese imports, while China has retaliated with its own tariffs on $110 billion worth of American goods, including soybeans and other commodities.
Beijing is attempting to maintain stable growth, while reducing the economy's reliance on debt. Many criticized the government's efforts in late 2017 and early 2018 as overly harsh, causing authorities to reverse their tone in the second half of last year with announcements of stimulus plans.
Zhang Liqun, research fellow at the Macroeconomic Department of the Development Research Center of the State Council, said last week that due partly to trade tensions, many export-related companies in Guangdong let their employees go on vacation in November with no clear plans for further production.
Retail sales have also slumped as consumers remain uncertain about the economic outlook.
— This is a developing story. Please check back for updates.
