Mubasher: China is planning to set a lower growth target of 6% for 2020 to spend more on infrastructure projects and stimulate the economy, Reuters reported on Saturday.

Chinese leaders are keen on limiting job losses that could have an impact on social stability.

The major economy’s annual budget deficit is expected to rise to 3% from GDP next year, from 2.8% in 2019, informed sources told Reuters.

China could allow local governments to issue special bonds worth CNY 3 trillion ($426.2 billion) in 2020 to fund infrastructure projects, the sources added.

In 2019, Beijing announced several pro-growth measures including cutting taxes and fees and letting localities issue CNY 2.15 trillion special bonds.

It is worth highlighting that the US and China agreed on an initial trade deal that will reduce tariffs between the two countries.

China agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods.