China wants cleaner economic growth :
BEIJING
( Reuters) - China has again suggested that the time of unbridled
growth was now over, the Prime Minister has indeed a "war" against
pollution and a slower pace of increased investment , which fall
announced this year to a low of more than ten years.
Speaking at the opening of the annual session of parliament, the National People's Congress (NPC) , Li Keqiang said the second world economic power was a growth in gross domestic product (GDP ) of about 7.5% 2014.
This objective, almost identical to the growth of 2013 ( 7.7%) and in line with forecasts of most analysts , is part of the ambitious reform program unveiled in November at the plenum of the Party Central Committee Communist .
This program aims to rebalance China's development , even slow the pace slightly , reducing its dependence on investment and exports in favor of strengthening domestic demand.
" The reforms are the priority of the government . We must have the will to break the psychological locks to deepen reforms on all fronts ," said Li Kegiang before the 3,000 delegates to the NPC.
Plants no longer producing little or nothing will be closed , private investment will be encouraged and the work of developing a new tax , favorable to the protection of the environment, will be accelerated , said the Prime Minister .
To accompany the molt of the Chinese economic model, the planning agency of the country - the Commission of reforms and national development - said in Parliament that the government was this year an increase of 17.5% investment in fixed assets , which would be the pace of the slowest growth in 12 years.
For some 30 years of often double-digit growth , these investments were the main driver of the Chinese economy, but at the cost of massive pollution of air and water and a colossal debt including local communities.
They had increased by 19.6% in 2013 - against a target of 18 % that was set by Beijing - and accounted for more than half of GDP growth last year.
REFORM PROGRAMME OF ENGAGED PRUDENT WAY
Pollution - like the "smog" that fell on Beijing in January - has become a major concern , even anger , to the Chinese.
It is not uncommon that the levels of air pollution in some Chinese cities exceed the threshold of danger to the health of residents .
The authorities intend to act on prices in order to promote non-fossil energy and reduce consumption in the sectors of steel and cement, which are among the main sources of air pollution.
In his speech broadcast live on state television , Li Keqiang said that the inflation target would be maintained at around 3.5% in 2014 and that China would move towards convertibility of its currency, the yuan.
Chinese authorities plan a budget for 2014 of 15.300 billion yuan ($ 1.800 billion ), with a deficit of about 2.1 % of GDP , a rate unchanged from 2013, the ministry of Finance.
These ads , in line with expectations of economists indicate that the reform program is well underway but prudently.
" This should mean that policy makers have a sufficient flexibility to ensure that growth remains at a sufficient level while implementing reforms ," wrote HSBC in a note written before this parliamentary session .
Analysts said the proposed reforms , such as reducing the weight of the public administration or the debt in sectors with overcapacity plant closures will be implemented gradually and with caution because of the risk of explosion of unemployment and social destabilization .
In addition, in the eyes of some of them , by refusing to accept a deceleration too strong economic growth , Beijing confirms that the evolution towards another model will be smooth , no offense to the sometimes strong expressions used by the Prime Minister.
" By maintaining a target of 7.5% of GDP , the government suggests that it may not contain the pace of credit growth as quickly as we hoped not going ," said Julian Evans- Pritchard, economist at Capital Economics.
As some market participants had anticipated a lower GDP target , the announcement of a 7.5% growth for this year has contributed to the good performance of Asian stock markets , those of Tokyo and Seoul and ended up having 1.20% and 0.88 % respectively .
Speaking at the opening of the annual session of parliament, the National People's Congress (NPC) , Li Keqiang said the second world economic power was a growth in gross domestic product (GDP ) of about 7.5% 2014.
This objective, almost identical to the growth of 2013 ( 7.7%) and in line with forecasts of most analysts , is part of the ambitious reform program unveiled in November at the plenum of the Party Central Committee Communist .
This program aims to rebalance China's development , even slow the pace slightly , reducing its dependence on investment and exports in favor of strengthening domestic demand.
" The reforms are the priority of the government . We must have the will to break the psychological locks to deepen reforms on all fronts ," said Li Kegiang before the 3,000 delegates to the NPC.
Plants no longer producing little or nothing will be closed , private investment will be encouraged and the work of developing a new tax , favorable to the protection of the environment, will be accelerated , said the Prime Minister .
To accompany the molt of the Chinese economic model, the planning agency of the country - the Commission of reforms and national development - said in Parliament that the government was this year an increase of 17.5% investment in fixed assets , which would be the pace of the slowest growth in 12 years.
For some 30 years of often double-digit growth , these investments were the main driver of the Chinese economy, but at the cost of massive pollution of air and water and a colossal debt including local communities.
They had increased by 19.6% in 2013 - against a target of 18 % that was set by Beijing - and accounted for more than half of GDP growth last year.
REFORM PROGRAMME OF ENGAGED PRUDENT WAY
Pollution - like the "smog" that fell on Beijing in January - has become a major concern , even anger , to the Chinese.
It is not uncommon that the levels of air pollution in some Chinese cities exceed the threshold of danger to the health of residents .
The authorities intend to act on prices in order to promote non-fossil energy and reduce consumption in the sectors of steel and cement, which are among the main sources of air pollution.
In his speech broadcast live on state television , Li Keqiang said that the inflation target would be maintained at around 3.5% in 2014 and that China would move towards convertibility of its currency, the yuan.
Chinese authorities plan a budget for 2014 of 15.300 billion yuan ($ 1.800 billion ), with a deficit of about 2.1 % of GDP , a rate unchanged from 2013, the ministry of Finance.
These ads , in line with expectations of economists indicate that the reform program is well underway but prudently.
" This should mean that policy makers have a sufficient flexibility to ensure that growth remains at a sufficient level while implementing reforms ," wrote HSBC in a note written before this parliamentary session .
Analysts said the proposed reforms , such as reducing the weight of the public administration or the debt in sectors with overcapacity plant closures will be implemented gradually and with caution because of the risk of explosion of unemployment and social destabilization .
In addition, in the eyes of some of them , by refusing to accept a deceleration too strong economic growth , Beijing confirms that the evolution towards another model will be smooth , no offense to the sometimes strong expressions used by the Prime Minister.
" By maintaining a target of 7.5% of GDP , the government suggests that it may not contain the pace of credit growth as quickly as we hoped not going ," said Julian Evans- Pritchard, economist at Capital Economics.
As some market participants had anticipated a lower GDP target , the announcement of a 7.5% growth for this year has contributed to the good performance of Asian stock markets , those of Tokyo and Seoul and ended up having 1.20% and 0.88 % respectively .
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