China prepares to end GDP obsession
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Fine with slowdown?
Wen also announced in his government work report that the 2011 economic growth was set at around 8 percent.
This is the seventh consecutive year that the government eyes the same growth figure, which authorities feel is the minimum figure to secure employment and improve the people's living standard.
"It is necessary to maintain an appropriate pace of economic growth in order to expand employment, improve the people's well-being and consolidate and expand on our achievements in response to the global financial crisis," according to the 2011 draft plan for national economic and social development, just released by the National Development and Reform Commission (NDRC).
"As a developing nation with a huge population, China can not afford no growth or slow growth," warned Wang Yiming, deputy head of the Academy of Macroeconomic Research under the NDRC.
China should keep a "certain pace of growth", otherwise company profits, governmental fiscal revenue and employment will not be ensured, he said.
Commenting the government's target of creating 45 million new job opportunities in urban areas in the next five years, Wang Jun said that if the service industry can be substantially expanded amid economic restructuring, it will create enormous employment.
The government is also seeking growth in new areas, such as new strategic sectors, which are part of the efforts in economic restructuring, he said.
The draft 12th Five-Year Plan aims to develop new strategic industries, such as alternative energy and bio-technology to make these sector's value-added output account for eight percent of the country's GDP by 2015.
Concern or benefit for the world?
The slower speed of China's growth has caused concerns from the outside world, as it indicates that China will reduce its demand for goods and commodities from other countries, which are struggling for recovery from economic recession.
China has a huge appetite for foreign products, such as soybeans, clothes, iron ore and cell phones. Its economic boom has benefited many foreign companies.
"For China, the broader official agenda makes sense, especially if the government works on developing its own competence. The implications for foreigners are less clear," according to an article on the website of the Financial Times on Wednesday.
The article noted that a slower growth rate might reduce trading opportunities and calm demand for commodities.
"A slower economic increase will affect the global economy, since China's demand is tremendous," Wang Jun said. It is understandable that foreign nations have such concerns.
However, China's push on improving economic quality will keep its growth more sustainable, which means more opportunities for the world will continue for a longer time, he added.
He expected China's rapid growth to continue for the next 20 to 30 years as there are huge growth potentials in its industrialization, globalization and urbanization.
The growth potentials will also serve as a great boost to the world's economy, he added.
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