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The Cabinet report listed several challenges ahead, including slow economic restructuring, worsening pollution and “social conflicts among interest groups”.
“We can not deny a downward pressure on economic growth,” said Xu Shaoshi, minister in charge of China’s top economic planning body, when briefing lawmakers about the report.
The report was submitted by the State Council, China’s cabinet, to the bi-monthly session of the Standing Committee of the National People’s Congress (NPC).
The five-year plan set an annual growth target of gross domestic product (GDP) at 7 per cent between 2011 and 2015.
There are uncertainties in global economic recovery and the international market has failed to produce strong demand, Xu said.
At home, labor cost increases and environmental costs to enterprises are catching up, which challenges the traditional growth pattern, he added.
The report criticized what it called “blind government investment in industrial projects” saying this increased risks in local government debt.
The government will continue cutting excess capacity in industries like steel, cement, electrolytic aluminum, glass and shipbuilding and stop the expansion of high energy user and high polluters, said the report.