Chinese President Xi Jinping is demanding that officials take care to ensure that China’s GDP growth rate this year surpasses that of the United States, despite the adverse effects of another COVID-19 outbreak in the country, The Wall Street Journal reported, citing knowledgeable sources.

The sources said that in meetings with economic and finance chiefs in recent weeks, Xi has spoken of the need for economic stability and growth to show that China’s current one-party system is more effective than Western liberal democracy.

In response to the Chinese President’s calls for accelerated growth, Chinese agencies are discussing plans to boost major projects, especially in the manufacturing, technology sector, as well as energy and food production. They are also considering boosting consumer spending by distributing shopping coupons to people, the sources said.

The U.S. economy grew at a 5.5% annualized rate in the fourth quarter of 2021, outpacing China’s rise of 4%. American President Joe Biden drew attention to this situation, saying that it was noted for the first time in 20 years, and it infuriated Chinese leaders, writes WSJ.

China should act more decisively in macroeconomic policy to insure the economy against the effects of the COVID-19 outbreak, maintain economic growth in the second quarter above 5 percent and ensure that the 5.5 percent growth target set for this year is achieved, Wang Yiming, a member of the monetary policy committee of the People’s Bank of China (PBOC, the country’s central bank), said during an economic forum held in Beijing last week.

China’s GDP grew by 4.8% in the first quarter of this year, but many economists believe that this data may be overestimating the situation in the country’s economy.

Experts are also skeptical about the possibility of Beijing achieving its GDP growth target of 5.5% this year under the zero-tolerance policy of COVID-19, which has already led to a decline in consumer spending and industrial production.

According to sources, Chinese officials are keen to attract foreign investors and companies concerned about Beijing’s increased pressure on the private sector, including the most attractive technology companies. In addition, Chinese authorities intend to change policies to pressure other sectors, including real estate construction, to support the economy.

The International Monetary Fund (IMF) earlier this month downgraded China’s GDP growth forecast to 4.4% from the previously expected 4.8%, noting as negative factors the growing pressure of lockdowns on the economy, as well as the consequences of the Russia-Ukraine conflict. US GDP, according to the IMF forecast, will increase by 3.7% this year (previous forecast – 4%).