China Premier sets out economic goals

Semiu Salami
Semiu Salami
China's Premier Li Keqiang

China’s Premier Li Keqiang unveiled a lower growth target and pledged tighter environmental controls as he opened parliament’s annual session.

Addressing the National People’s Congress (NPC), Li said China would target growth of around seven percent in 2015.

With traditional drivers of growth weakening, more structural reform was needed going forward, he said.

Describing pollution as a “blight” on quality of life, he said environmental laws would be strictly enforced.

Some 3,000 legislators from across China convene for the annual legislative session at Beijing’s Great Hall of the People.

China describes the NPC as the country’s “supreme organ of state power”. It has the power to enact and amend legislation. In practice, it is generally considered a rubber stamp for the ruling Communist Party.

The premier’s work report traditionally opens the session, which ends on 15 March.

Announcing the annual growth target, Li said China had to “maintain a proper balance between ensuring steady growth and making structural adjustments”.

The seven percent figure is lower than the 7.5 percent set last year – a target that was missed as China grew at its slowest pace in 24 years.

After years of double-digit growth, China’s leaders are now advocating a “new normal” of slower expansion.

The world’s second largest economy is trying to move from an export-led growth model fuelled by government investment to one driven by higher domestic consumption and a larger services sector.

“Deep-seated problems in the country’s economic development are becoming more obvious,” said Li.

“The difficulties we are facing this year could be bigger than last year. The new year is a crucial year for deepening all-round reforms.”

He said China aimed to create more than 10 million new urban jobs in 2015 and maintain an unemployment rate of 4.5 percent.

Job creation is seen as vital to providing employment for the millions of new graduates who emerge on to the job market each year.

On the environment, Li promised to fight pollution “with all our might”.

“We must strictly enforce environmental laws and regulations; crack down on those guilty of creating illegal emissions and ensure they pay a heavy price for such offences,” he said.

China is facing major pollution problems after runaway industrialisation. Last year, a government report found almost a fifth of China’s soil was contaminated. Unhealthy levels of smog frequently hit its major cities.

Li touched on corruption only briefly, telling lawmakers that the “tough stance” was here to stay.

The government also confirmed that the military budget would rise 10.1 percent in 2015, as indicated on Wednesday by an official.

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