But China’s growth last year was even more unbalanced than usual. The country lost ground on its goal of shifting from its addiction to exports and debt-fueled infrastructure investments, and toward a more sustainable reliance on domestic consumption. As in most countries during the pandemic, travel and leisure spending plummeted in China last year.

Mr. Li warned of risks ahead.

“As the coronavirus continues to spread around the world, instability and uncertainty are mounting on the international landscape, and the global economy continues to face grave challenges,” Mr. Li said as he delivered his annual report on the government’s work.

Mr. Li pledged to cut taxes for the smallest businesses, many of which are tiny shops in towns and villages. He promised to step up efforts to increase consumption but also indicated that infrastructure spending would continue at a very fast pace.

He forecast a slight narrowing of the central government’s budget deficit this year. That is to be achieved through limits on social spending, even as military spending continues to surge by nearly 7 percent a year. His government also released a draft plan for long-term development, setting out goals to transform the country into a technologically advanced and environmentally clean power over the next five years and beyond.

“Although remarkable achievements have been made in China’s economic and social development, we still have quite a way to go and a lot of hard work to do before we can achieve modernization in all respects,” Mr. Li said.

Keith Bradsher reported from Beijing, Chris Buckley from Sydney, Australia, and Vivian Wang from Hong Kong. Austin Ramzy contributed reporting from Hong Kong. Albee Zhang, Claire Fu and Liu Yi contributed research.

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