Zhang Ping, chairman of the National Development and Reform Commission (NDRC), China's top economic planning body, answered questions concerning China's economic growth and the real estate market at a press conference in Beijing on Mar. 5.

The following are some of the issues Zhang responded to at the press conference:

Economic growth

China will set this year's economic growth target at 7.5 percent, lower than last year's target of 8 percent and also lower than last year's actual GDP growth of 9.2 percent.

In response to the lowered target, Zhang said this year will serve as a transition towards China's shift towards an economic growth mode that favors quality and efficiency.

"Economic restructuring" is Zhang's catchphrase for economic growth. As he put it: "The aim of lowering the growth target is to better adjust the shift of economic growth pattern and pursue an economic growth mode characterized by scientific development."

"Overheated economic growth will put a strain on the economy," Zhang said. "Braking the economy a little bit will ease the restraints imposed by energy resources and the environment."

Despite the lower target, Zhang gave an upbeat assessment of the Chinese economy.

"China's positive economic outlook is unchanged. China is still on track to achieve stable and relatively rapid growth in the long term," he said.

In talking about inflation, Zhang said he is confident that China will be able to realize its inflation target of 4 percent set for this year. China's consumer prices rose 5.4 percent last year, failing to hit the inflation target of 4 percent set last year.

Consumer demand

As indicated in the work report delivered by Premier Wen Jiabao at opening session of the National People's Congress on Feb. 5, the government will pin its hopes on expanding consumer demand this year.

"Expanding domestic demand, particularly consumer demand, which is essential to ensuring China's long-term, steady, and robust economic development, is the focus of our economic work this year," the report said.

This means the government will rely less on investment and exports, and more on consumer demand to reach its targets, Zhang said.

Considering China has a huge economy and the external environment is deteriorating, it will take greater efforts to achieve the 7.5 percent growth target, Zhang said.

Real estate market

Zhang reiterated the government's determination to cool red-hot growth in the real estate market. He said the NDRC is cooperating with other departments to develop a long-term mechanism targeted at the healthy development of the property sector.

Zhang stressed that construction of low-income housing is key to achieving the government's goal to bring property prices down to a reasonable level.

In what might be a straw in the wind, Chinese banks have started offering preferential loan rates for first-time home buyers, a move that could be interpreted as a signal that the government is relaxing its control on the property sector after a near two-year clampdown.

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