China government is aiming for average economic growth above 6.5% for next five years, the government said on Saturday, as the world’s number 2 economy seeks to balance deep structural reforms, gyrating financial markets and softening global trade.
Unveiling a draft of its new five year development plan at the annual meeting of parliament, Beijing said it would target economic growth between 6.5 to 7% in 2016. Weighed down by sluggish demand at home and abroad, industrial overcapacity and faltering investment, China’S economic growth slowed to 6.9% in 2015, its weakest in a quarter of a century. Economists expect it to cool further to around 6.5% this year.
China’s 13th five year plan is a blueprint for economic and social development between 2016 and 2020. In the week leading up to parliament, the government flagged major job losses in the key production industries of coal and steel as policy makers seek to eliminate inefficiencies and overcapacity in state owned enterprises through consolidation and lay-offs.
China aims to lay off 5 to 6 million state workers over the next two to three years, two sources said, Beijing’s boldest retrenchment program in almost two decades. China’s leadership, eagar to maintain stability and ensure redundancies do not lead to unrest, will spend nearly 150 billion yuan ( USD 23 billion ) to cover layoffs in just the coal and steel sectors in the next 2 to 3 years.
Premier Li Keqiang said the country will create 10 million new jobs and hold the urban registered unemployment rate below 4.5% in 2016. The one party state is targeting average consumer inflation around 3% and money supply expansion of around 13% in 2016, and aims to cap total annual energy consumption at 5 billion tonnes of standard coal by 2020 – the first time it has introduced such a target. China will increase military spending by 7.6% this year, its lowest increase in six years, as the premier vowed to push on with a modernisation plan that will shrink staffing.
A big tent
Every year around 3000 delegates from across the country meet in Beijing’s great hall of the people for the national people’s congress that lasts around 12 days. The delegates attending the session represent China’s 31 provinces, municipalities and autonomous regions, as well as Hong Kong, Macau and the military. There are also delegates for self ruled Taiwan, made up of defectors and their descendents. They serve 5 year terms.
Parliament’s largely ceremonial advisory body, the Chinese People’s Political Consultative conference, meets in parellel with the NPC. It is made up of business magnates, artists, monks, non communists and other representatives of broader society, but it has no legislative power.
While the parliament is considered a rubber stamp body, applied to economic and political goals decided at the higher of the levels of the Chinese Communist Party’s leadership, debates can still be lively. It is also a chance for officials from around the country to meet each other and exchange ideas : from sophisticated urbanites urbanites to the leaders of poor rural counties, along with celebrities, business executives, and regulators.
Sourced : Moneycontrol.com
