Even as uncertainty and instability in the global economy continue to pose a risk to the country's growth, China's top economic planner said on Sunday that China's economy isn't headed for a hard landing and isn't dragging on the global economy.
While pushing hard to create more jobs and restructuring state-owned enterprises, China is facing a tough battle to keep world's No.2 economy growing by at least 6.5 percent over the next five years, the country acknowledged on Saturday.
The challenges facing China as its economy transitions from an investment and export focused economy to one based more on services and consumption were underscored by the comments as Beijing kicked off its 12-day annual national parliament.
"China will absolutely not experience a hard landing. These predictions of a hard landing are destined to come to nothing," Xu Shaoshi, head of the National Development and Reform Commission (NDRC), told reporters at a briefing.
While still comfortably being the fastest among major economies, China's economy grew 6.9 percent in 2015, the slowest pace in a quarter of a century.
Introducing a band rather than a hard target as it seeks greater flexibility in juggling growth, job creation and restructuring of a host of "zombie companies" in bloated industries, China has set a growth target of 6.5 percent to 7 percent for this year.
A series of targets on issues such as energy consumption, job creation and inflation were outlined by Premier Li Keqiang on Saturday although few details on how they would be met.
Many investors had been hoping China would post an aggressive target for fiscal spending to prop growth.
While up from the previous year's target of 2.3 percent, the draft goal of running a fiscal deficit equivalent to 3 percent of GDP disappointed some.
Suggesting a desire for more targeted spending, Xu emphasized that China will work to improve the "efficiency" of government investment.
After the global financial crisis when Chinese local governments built ghost cities, roads to nowhere and airports to juice growth, the recent ambitions would be a contrast to that last stimulus injection.
A sharp decline in reserves in the past 18 months as Beijing sought to support its yuan has rattled some investors even as China has massive foreign exchange reserves of more than $3 trillion to tap if needed.
Beijing will keep the yuan basically stable and there was no basis for continued depreciation, reiterated the Central bank vice governor Yi Gang on Sunday.
At the meeting of the Group of 20 finance ministers and central bankers in Shanghai last month, the key talking points were the state of China's economy and Beijing's ability to manage it.
While pressing ahead with reforms China has the confidence to handle the complexities both at home and abroad, Li said.
"In general, I think China's economy performance has stayed at a reasonable range (since 2015). First, we should look from the angle that the economy has entered the 'new normal' period," Xu said. He added that the Chinese economy shouldn't be viewed through traditional perspectives.
(Source:www.reuters.com)
While pushing hard to create more jobs and restructuring state-owned enterprises, China is facing a tough battle to keep world's No.2 economy growing by at least 6.5 percent over the next five years, the country acknowledged on Saturday.
The challenges facing China as its economy transitions from an investment and export focused economy to one based more on services and consumption were underscored by the comments as Beijing kicked off its 12-day annual national parliament.
"China will absolutely not experience a hard landing. These predictions of a hard landing are destined to come to nothing," Xu Shaoshi, head of the National Development and Reform Commission (NDRC), told reporters at a briefing.
While still comfortably being the fastest among major economies, China's economy grew 6.9 percent in 2015, the slowest pace in a quarter of a century.
Introducing a band rather than a hard target as it seeks greater flexibility in juggling growth, job creation and restructuring of a host of "zombie companies" in bloated industries, China has set a growth target of 6.5 percent to 7 percent for this year.
A series of targets on issues such as energy consumption, job creation and inflation were outlined by Premier Li Keqiang on Saturday although few details on how they would be met.
Many investors had been hoping China would post an aggressive target for fiscal spending to prop growth.
While up from the previous year's target of 2.3 percent, the draft goal of running a fiscal deficit equivalent to 3 percent of GDP disappointed some.
Suggesting a desire for more targeted spending, Xu emphasized that China will work to improve the "efficiency" of government investment.
After the global financial crisis when Chinese local governments built ghost cities, roads to nowhere and airports to juice growth, the recent ambitions would be a contrast to that last stimulus injection.
A sharp decline in reserves in the past 18 months as Beijing sought to support its yuan has rattled some investors even as China has massive foreign exchange reserves of more than $3 trillion to tap if needed.
Beijing will keep the yuan basically stable and there was no basis for continued depreciation, reiterated the Central bank vice governor Yi Gang on Sunday.
At the meeting of the Group of 20 finance ministers and central bankers in Shanghai last month, the key talking points were the state of China's economy and Beijing's ability to manage it.
While pressing ahead with reforms China has the confidence to handle the complexities both at home and abroad, Li said.
"In general, I think China's economy performance has stayed at a reasonable range (since 2015). First, we should look from the angle that the economy has entered the 'new normal' period," Xu said. He added that the Chinese economy shouldn't be viewed through traditional perspectives.
(Source:www.reuters.com)
