Amid Brexit and Trump uncertainties, China strikes note of caution in economic plan for 2017
Beijing lays down target of 6.5pc growth and vows to stay alert to risks in the financial system at home
The Chinese government unveiled a conservative master plan for the economy for 2017 as Beijing prepares to undergo a power reshuffle at home while facing mounting uncertainties abroad.
At the National People’s Congress gathering on Sunday, Chinese Premier Li Keqiang said the country was aiming for 6.5 per cent growth or “higher if possible” for 2017 – a target slightly less ambitious than last year’s range of 6.5 to 7 per cent. The year-end figure fell in the middle at 6.7 per cent, but still the slowest pace in a quarter-century.
Meanwhile, Li said China would face a “more complicated and grimmer” environment and must be highly alert to vulnerabilities in the financial system.
Beijing’s caution signals that economic and social stability remains high on the leadership’s agenda, ahead of the 19th party congress in the autumn and deepening uncertainties arising from Brexit in Europe, and the policies of US President Donald Trump in the United States and Europe.
“China is at a crucial and challenging stage in its own development endeavours,” Li said as he read out the annual government work report to the nearly 3,000 NPC deputies gathered in Beijing. “World economic growth remains sluggish while de-globalisation and protectionism are growing.”
There were many uncertainties about “the direction of the major economies’ policies and their spillover effects”, which could affect China, he said.
Li also suggested that economic growth below 6.5 per cent would be a disappointment, and urged a rate “higher if possible in practice”.
Zhang Yunling, a researcher at the Chinese Academy of Social Sciences, said the target reflected the likely focus of the economy this year – slowdown and restructuring – with the 6.5 per cent as a bottom line to ensure employment.
