The Chinese economy is expected to grow this year, with 6.0 to 6.5 percent, noticeably slower than before. Given the trade war with the United States and the high indebtedness of the head of government Li Keqiang set a target-the lowest growth in almost three decades.

“The downward pressure on the Chinese economy continues to grow,” said Li at the opening of the annual session of the national people’s Congress in Beijing. The growth in the consumption and the investments of the momentum, Li in his accountability report was missing from the nearly 3,000 delegates.

Still, China’s military budget will rise 7.5 percent more than the total expenditure of 6.5 per cent. The budget deficit rising from 2.6 percent of economic output in the year-on-year to 2.8 percent. Against the Background of growing tensions in the South and East China sea, and Beijing’s threats against Taiwan, the Expansion of the Chinese military, in particular, from neighboring States, and the United States is watching with concern. Last year, the defence budget was increased to 8.1 percent.

China will strengthen its armed forces and the “Training under combat conditions” improve, stressed Li. The “sovereignty, security and development interests” of the country would have to be protected. He also reiterated the goal of a conquest of Taiwan: China decided against “separatist” activities, which strove for independence, said the Premier. The Communist leadership considers the democratic island Republic as a part of the people’s Republic, though she has never heard of.

With a view to the criticism of China’s trading partners, more market promised Li access and reform. The goal is a fair and impartial market environment in which Chinese and foreign companies be treated equally and in a fair competition with each other. Foreign companies should be able to do in more areas of the business, the financial market will open further. The “Negative list” of sectors in which foreign companies cannot invest, will be shortened. China wants to keep more closely to internationally accepted trade rules, and promised to Li.

In his report he warned of uncertainties in the world economy, not to mention the trade war with the United States directly. “The growth of the global economy is slowing down, and protectionism and unilateralism to take,” said Li. “There are drastic fluctuations in raw material prices on the world market.” So China’s economy is faced with many challenges. “Only vigilance for hazards to ensure safety.”

Because of the high indebtedness of companies and municipalities, the head of the government warned of financial problems. “There are many risks and hidden dangers in the field of Finance and elsewhere.” He also spoke of the dissatisfaction of the people about deficiencies in the education and health care, in care of the elderly, housing, Medicine and food security, and unequal distribution of income.

“We have to maintain the right Balance between maintaining stable growth, and the protection against risks, to ensure sustainable, healthy economic development,” said the Premier.

In the previous year, had called Li, as usual, be careful “around 6.5%” growth target for 2018. At the end of 6.6 per cent have been achieved. So slowly, China’s economy was not grown since 1990. At the time, had slowed down the development of the economy as a result of the bloody suppression of the democracy movement a year earlier, abruptly.

The Premier also warned against short-term economic aid, which might create new risks and long-term growth technology practice. He announced at the same time for more tax cuts. So the VAT will be reduced from 16 to 13 percent. In some areas, such as Transport and construction, the tax rate will be set from 10 to 9 per cent. Also taxes and social contributions for firms should be reduced and companies can more easily get loans, announced the Premier.

While Li to more efforts in the fight against environmental pollution called, was heavy Smog over the more than 20 million inhabitants of the Chinese capital. For days, the pollution levels were in Beijing at a high and alarming level. So the burden from fine dust is reached on Tuesday, “very unhealthy” 278 points on the air-index – almost ten times the world health organization (WHO) recommended limit.

The Parliament session ends on the 15th. March.