Business / Economy

China sets 2020 goals as legislature convenes

(Xinhua) Updated: 2016-03-05 11:06

Despite slower growth, China still created 13.12 million new jobs and increased per capita disposable income by 7.4 percent.

The progress was achieved in the context of "extremely complicated and challenging international environment" and prominent deep-rooted domestic problem, Li stressed.

Warning "more and tougher problems and challenges" this year, the premier noted that 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," he said. "There is no difficulty we cannot get beyond."

The report listed a number of advantages, including a solid foundation laid by fast growth for years, hugely resilient economy, enormous potential, ample room for growth, new impetus provided by reform and finer macro-economic regulation.

Chi Fulin, a national political advisor 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."

China will continue to be a growth engine for the world as it is unveiling a new round of opening up, featured by the Belt and Road Initiative, international production capacity cooperation and infrastructure investment initiatives, he said.

Bigger deficit & overcapacity cut

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

This year China's government deficit is expected to stand at 2.18 trillion yuan ($335 billion), 560 billion yuan more than last year, while the deficit-to-GDP ratio up from 2.3 to 3 percent.

The policy is mainly to cover tax and fee reduction, which is expected to ease the financial burden on industry by over 500 billion yuan together with other policies.

The premier also vowed to address capacity glut in steel, coal and other heavy industries as well as strictly control the expansion. About 100 billion yuan will be spent on resettling laid-off employees in these industries.

Wang Shiling, an NPC deputy and president of a real estate and trade company in east China's Shandong Province, told Xinhua that he feels positive about in China's economic future.

"The government has included targeted policies to close loopholes and encourage initiative in industry. These are exactly what we need now," he said.

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