China aims at 6.5% GDP growth, upgrading real economy

China's top legislature, the National People Congress, has started its annual plenary session.

While delivering a government work report, Chinese Premier Li Keqiang pledged to continue reforms to attain an economic growth target of about 6.5 percent in 2017, and to upgrade the structure of the real economy to improve its performance.

Our reporter Huang Yue has the details.

In his annual government work report at the NPC session, Premier Li Keqiang set China's GDP growth target at around 6.5 percent for 2017, which he said is realistic and in keeping with economic principles.

"Our key projected targets for development this year are: GDP growth of around 6.5 percent, or higher if possible in practice; CPI increase kept at around three percent."

The premier said the target will help steer and steady expectations and make structural adjustments as well as help achieve the goal of building a moderately prosperous society in all respects by 2020.

This target is a 25-year low, down from last year's actual growth of 6.7 percent. Despite the slowdown, China remains one of the world's fastest-growing economies.

Deputy Yan Chengzhong from east China's Shanghai [Photo: China Plus]

Deputy Yan Chengzhong, a professor of Donghua University in east China's Shanghai, said he is confident about China's economy despite challenges ahead.

"Slowdown of China's increasing GDP (growth) is a comparative concept. China still takes the lead in global GDP growth and also China is the world largest manufacturer. So even though the speed of growth is a little bit slower compared to the past year, but I think the speed, we can see it still in a high and medium level."

The premier pledged more support for the real economy as the country seeks to maintain a prudent monetary policy.

He stressed that the real economy has always been the foundation of China's development, adding the task for China now is to speed up its transformation and upgrading.

According to the government work report, China will prompt financial institutions to focus on their main business and strengthen their ability to serve the real economy, and stop them being distracted from their intended purpose.

Yuan Gangming, a researcher from the Institute of Economics at the Chinese Academy of Social Science, says the most important thing is to restrict over-investment in the fictitious economy.

"First and foremost, we must take action to restrict over-investment in the fictitious economy, especially the property industry. This is of great significance. Otherwise, all capital will continue to flow into the speculation."

Deputy Cao Yong from east China's Jiangsu Province [Photo: China Plus]

Deputy Cao Yong from east China's Jiangsu Province urges the government to take more measures to encourage talents to develop the real economy.

"The real economy is the basis for a country's development and prosperity, while a fictitious economy is just a transferring process of wealth. Recently China's real economy has been hit by the overheated property industry. The government should take more measures to encourage talents to take part in the development of real economy, so as to improve its performance and competitiveness."

According to the premier, efforts will be made to encourage a greater flow of financial resources into the real economy, particularly in support of agriculture, rural areas and farmers, as well as small and micro businesses.

For CRI, this is Huang Yue.