China to deepen reform 'on all fronts'

China's economic growth target is to remain at 7.5 percent for this year but there will be plenty of change, with deepening reforms and wars waged on poverty and pollution, Premier Li Keqiang said yesterday.

The country is to shift toward more balanced and cleaner economic growth, Li told almost 3,000 delegates at the opening session of China's top legislature, the National People's Congress.

In his first government work report, Li said the growth target was set after serious and repeated deliberation, reflecting a desire to keep market sentiment stable while accelerating economic restructuring.

"Economic development is the key to address all issues in China," Li said.

Uncertainties and challenges remained, he said, such as a still weak foundation for recovery, a lack of strong new economic drivers, risks in areas such as finance and government debt, and overcapacity in some industries.

To cope with these issues, reform was the government's top priority this year.

"We must have the mettle to fight ... and break mental shackles to deepen reforms on all fronts," Li said.

China is gradually moving away from a growth model largely driven by investments and exports.

In a set of goals released by the National Development and Reform Commission yesterday, the country said it was aiming at a 17.5 percent expansion in fixed-asset investment this year, the slowest in at least a decade.

Investment accounted for more than half of China's 7.7 percent growth in 2013 by increasing 19.6 percent, exceeding the 18 percent target.

Meanwhile, the trade goal was downgraded to 7.5 percent for 2014, compared with last year's 8 percent target.

China's economy will increasingly be driven by domestic demand, Li said.

"Stronger domestic demand will become the major power to push forward China's economic growth," he said. "It is an important step in economic restructuring ... domestic consumption will play a key role in generating new growth spots for China."

Services, including health care, tourism, culture and geriatric nursing, had the potential to grow into large industries that can bolster the economy, the premier said.

The country will also carry out further reforms in taxes, the exchange rate regime and will open up more sectors for foreign and private investment.

But the changes would take place at a gradual pace, so as not to trigger an abrupt economic slowdown, Li said.

The country would also try to manage inflation at under 3.5 percent and create 10 million new jobs to bring the registered urban unemployment rate to 4.6 percent or below.

The government would also work to ensure that the per capita income of residents rose in line with economic growth.