China revises growth target, initiates more reforms

China Premier Li Keqiang announced that the government has revised its growth target for this year. In a report to the national legislature on March 5, the Premier cited a  6.5 to 7 percent growth target for 2016.  The revised target also reflects the country's efforts to further boost trade and investment in the wake of sustained growth driven by consumer spending.Mr. Li noted that China currently faces more challenges, which include low export demand, although he is optimistic that the country can sustain its growth momentum. 

 

 

The Premiuer addressed around 3,000 delegates to the National People's Congress, a 12-day event that started on March 5. 

 

China is also expected to initiate measures that will open up certain sectors to private competitors in a bid to implement industrial reforms. The government plans involve opening up such industries as banking, oil, steel and telecommunications to private business. It will also take drastic moves to minimize pollution, while spending more on on science and industrial research and development. These reforms have raised optimism on China's industrial sector.  

 

Last year, China's economic growth was down to a 25-year low of 6.9 percent. Some analysts hint that achieving the revised lower target will be a challenge. The International Monetary Fund expects China to post  6.3 percent growth this year. The reforms announced recently are expected to