China targets 7.5% GDP growth for 2014

China today targeted a modest 7.5 per cent GDP growth in 2014, unchanged from last year, as the Government looks to steer the economy onto a more sustainable and balanced path.

The new target was announced in the first work report by Premier Li Keqiang at the annual session of the National People’s Congress.

Comprising about 3,000 deputies, the NPC began its eight-day session in the backdrop of last Saturday’s horrific knife attacks by a group of militants from Xinjiang at Kunming railway station in which 33 people were killed and 143 injured in what the official media called as China’s 9/11.

The NPC session began with silent tribute to the victims of the Kunming attack.

Presenting his first work report after completing a year in office, Li set this year’s economic growth target at 7.5 per cent, the same as last year’s target and slightly lower than the 7.7 per cent actual growth in 2013.

Other key economic goals, such as the consumer price index and the unemployment rate, remain generally the same as those of last year.

Li said the reform will focus on the most wanted areas, the most pressing problems and the sections having the biggest consensus.

China faces great challenges and complex problems in pushing forward economic and social development, he said.

“The foundation for sustaining steady economic growth is not yet firm, and the internal impetus driving growth needs to be increased,” Li said.

The world economic recovery still faces instability and uncertainties as macro-policy adjustments made by some countries introduce new variables and emerging economies are facing new difficulties and challenges, he said.

Domestically, Li cited risks from public finance and banking; overcapacity, difficulties in exercising macro-controls and increasing agricultural output and rural incomes, as major challenges.

Deep-seated problems are surfacing while painful adjustments need to be made, he said.

“The pace of economic growth is changing and downward pressure on the economy remains great,” he said.

China, however, is able to maintain a moderate and even high economic growth for some time to come as industrialisation and urbanisation are continuing and there is considerable potential for regional development, he said.

The tasks of tackling air, water and soil pollution, as well as conserving energy and reducing emissions remain arduous, Li said adding that there were major structural problems constraining employment.

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