China plans to cool down its economic growth by curbing it to
eight percent, a level lower than the staggering 10.7-percent GDP
growth rate seen in 2006, according to a government work report
delivered by Premier Wen Jiabao on Monday.
"The most important task for us is to promote sound and fast
economic growth," said the premier to 2,890 lawmakers at the
opening meeting of the Fifth Session of the Tenth National People's
Congress (NPC), China's top legislature.
"We need to greatly improve the quality and efficiency of
economic growth," Wen said.
This target came after careful consideration of all factors,
along with employment goals and increase in consumer prices among
others, Wen said.
Experts see it as the right way to achieve smooth and regular
economic growth.
NPC deputy Zhao Peng, president of the Anhui branch of the
Industrial and Commercial Bank of China, called the target
"reasonable".
"Higher growth rate will lead to overheating and a lower one is
less helpful in resolving social problems," he said, adding that
China still has stamina in economic development.
Chen Derong, NPC deputy and mayor of Jiaxing City in east
China's prosperous Zhejiang Province, stated that the goal would
help local governments shift their focus from blind economic
competition to structural optimization of industries whilst
improving efficiency and energy saving.
A World Bank report released on February 14 predicted a
9.6-point growth in China's economy this year. Louis Kuijs, senior
economist on China and the author of the above report said China
had showed great potential in improving productivity.
The report comments on further Chinese government pledges,
namely to lower urban unemployment to under 4.6 percent by creating
at least nine million new jobs, while keeping the overall increase
of consumer prices, an important inflation measure, at under 3
percent.
Governmental spending on agriculture, rural areas and farmers
topped 339.7 billion yuan (US$42.5 billion) in 2006, a major
year-on-year increase of 42.2 billion yuan (US$5.3 billion). This
followed the rescinding of all agricultural tax and taxes on
agricultural products, a practice that had existed for over 2,600
years.
Urban per capita disposable income rose to 11,759 yuan
(US$1,469.9), and rural per capita net income climbed to 3,587 yuan
(US$448.4) in 2006, up by 10.4 percent and 7.4 percent
respectively, according to the report.
(Xinhua News Agency March 5, 2007)