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March 7, 2016

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China must fight ‘difficult battles’ to achieve goals

PREMIER Li Keqiang on Saturday expressed his confidence in realizing China’s 2020 goals, while talking of “a difficult battle” in the face of tougher challenges.

The government work report, delivered by Li at the opening meeting of the national legislature annual session, sets this year’s economic growth target at between 6.5 and 7 percent and the average annual growth rate for the next five years at 6.5 percent-plus.

This year is the start of China’s 13th five-year plan, during which it aims to complete, by 2020, its goal of building a “moderately prosperous society” by doubling the 2010 GDP and per capita personal income.

“We ... become more aware of the need to uphold political integrity, keep in mind the bigger picture, follow the Communist Party of China as the core of the Chinese leadership, act consistently with CPC Central Committee policies,” Li said.

His remarks echoed a recent article by Qiushi Journal, the CPC Central Committee flagship magazine, which cited the “four consciousnesses.”

Fidelity to the core leadership of the Party is characterized by staunch loyalty to “the Communist Party of China Central Committee, [its] General Secretary Xi Jinping as well as to Party theories, guidelines, principles and policies,” it said.

About 3,000 deputies to the National People’s Congress listened to Li’s speech, which called on all Chinese to “rally closer around the CPC Central Committee headed by General Secretary Xi.”

China is facing slower growth and trying to shift its development to a more sustainable model, the premier said.

On the country’s growth goals, Li said: “We have taken into consideration the need to finish building a moderately prosperous society in all respects and the need to advance structural reform.”

Such growth might help ensure employment and people’s welfare, he said.

Last year, China’s economy grew by 6.9 percent to more than 60 trillion yuan (US$9.2 trillion).

“The larger the economy grows, the greater the difficulty of achieving growth,” Li said.

Despite slower growth, China still created 13 million new jobs and increased per capita disposable income by 7.4 percent, he said.

The progress was achieved in the context of “extremely complicated and challenging international environment” and prominent deep-rooted domestic problem, he said.

Warning of “more and tougher problems and challenges” this year, the premier said the country must be fully prepared to fight a difficult battle.

As the world sees weak growth in trade, and fluctuations in financial and commodity markets, whose impact should not be underestimated, China is facing the changing pace of economic growth, difficulties in restructuring, shift of growth engines and downward pressure, Li said.

“We will not be daunted by these problems and challenges. There is no difficulty we cannot get beyond,” he said.

Chi Fulin, a national political adviser and director of the China (Hainan) Institute for Reform and Development, said: “There are several very positive indicators in China’s economy, for instance, fundamentals still in a reasonable range, a booming service sector and industrial restructuring.”

Li’s report listed a package of pragmatic policies to address economic weakness, including tax cut, flexible monetary policy, cut of overcapacity, and business creativity.

China’s deficit is expected to grow by 560 billion yuan this year to 2.18 trillion yuan, while its deficit-to-GDP ratio rise to 3 percent from 2.3 percent.

The premier promised also to reduce capacity in steel, coal and other heavy industries. About 100 billion yuan will be spent on resettling laid-off employees in these industries.

China’s main priority for next five years will be development, Li said, adding that the country must take care to avoid falling into the “middle-income trap.”

“Pursuing development is like sailing against the current: you either forge ahead or drift downstream,” he said.




 

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