China’s top economic planner says China’s 6.5% growth target attainable
Updated 10:58, 28-Jun-2018
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He Lifeng, newly-appointed director of the National Development and Reform Commission (NDRC), China’s top economic planning body, briefed the press to outline China’s macro-economic policies on Monday, saying that 2017 is a crucial year in the country's development.
He Lifeng, director of the NDRC

He Lifeng, director of the NDRC

China's 2017 GDP target attainable

Talking about China’s economic achievements last year, He said that the Chinese economy accounts for about 15 percent of global GDP, but the country contributed more than 30 percent of the world’s economic growth last year.
The NDRC chief said that this fact “fully illustrated that China’s economy had a stable and healthy growth.”
He cited highlights of last year’s economic growth, including poverty alleviation, control of inflation, and stable prices for PPI and CPI.
As the Chinese economy slows after decades of breakneck growth, much work has been put into structural adjustment. Observers are keen to see how the effects of this work will play out.
China on Sunday set its growth goal for 2017 at around 6.5 percent during the government work report delivered by Premier Li Keqiang. The rate was cut from 7 to 6.5 percent last year.
He said the 2017 target was both attainable and necessary, as job creation is an important task for China.
"According to our experience, each 1 percentage point of GDP growth will help create about 1.7 million jobs,” according to the official.
Without quality growth at a reasonable level, the country will find it hard to meet the job creation target of over 11 million that was also unveiled in the government work report, He said.
Graphic by CGTN's Meng Yaping and Yin Yating

Graphic by CGTN's Meng Yaping and Yin Yating

China will continue pricing reform

China’s Producer Price Index (PPI) returned to the positive range last September, and even climbed to 6.9 percent in January. Steel prices have also increased pretty fast, prompting questions over further action in pricing reform.
Ning Jizhe, deputy head of the NDRC, said that the overall PPI increase is within the normal range. He said that the jump is recoverable.
Ning Jizhe, deputy head of the NDRC

Ning Jizhe, deputy head of the NDRC

There was only a 1.6-percent increase in the past two years, he said, stressing a stable increase overall.
China’s commodity market is highly dependent on the market, and it has been influenced by commodity prices both domestically and internationally. Commodity prices in international market have increased heavily, especially crude oil and nonferrous metals, having a big effect on domestic prices. Also, producing prices of coal, steel, petrifaction and nonferrous metals in the country contribute 80 percent of China’s PPI increases, which is why the PPI has stopped falling and increased instead. 
In the past 30 years, significant achievements have been made in pricing reform. In pricing of all commodities and services, 97 percent of prices have been decided by the market, according to Ning, who also promised further laws and regulations to keep things in check.
He said China will strengthen market supervision and continue to deepen price reform this year. 

Virtual economy comes from real economy, and must serve the real economy

When taking questions on challenges facing the real economy, Zhang Yong, also deputy director of NDRC, said that the Party’s Central Committee and the State Council will focus on deepening reform, optimizing the environment, and creating platforms for growth. 
“We have done a series reform measures in streamlining the government administration and decentralize more power to lower levels, as well as lowering fees," he said.
Zhang Yong, deputy head of the NDRC

Zhang Yong, deputy head of the NDRC

Zhang said noted that China has opened 18 new pilot districts, and started 40 national engineering laboratories, as well as 89 national enterprise technology centers, initiatives to spur the real economy. 
“The virtual economy comes from the real economy, and it will also serve the real economy... I think that principle should not be changed.”
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