China's new targets

30 March 2017

China has lowered its growth targets in order to address various issues that are hindering future economic growth. We chose two articles focusing on China’s “new targets”. The first article covers several issues and why China is shifting its focus from aiming for high growth to addressing these issues instead. The second article concentrates further on one of China’s biggest problems – environmental pollution, and how reducing pollution can help the Chinese economy in the future.

 China Lowers Growth Target as Lawmakers Meet

China’s economic growth target has been revised and reduced after the country’s lawmakers’ annual meeting. This move was put in place to help reduce growth expectations and give the country a chance to focus on addressing other issues such as its maturing economy, industrial overcapacity, growing debt load and environmental pollution. Many economists argue that the lowered growth target is still too ambitious but lawmakers believe that the target is realistic and will ensure stable growth and employment. The lower target is meant to reduce the impact of major problems in the country and increase public confidence, which has been waning due to anger over environmental pollution and increasing debt.

China’s lawmakers plan to focus more on addressing issues such as reducing pollution by cutting excess coal production and burning, cutting sulphur dioxide and nitrogen oxide emissions, and reducing energy consumption. China will also continue to oppose protectionism and promote peace and stability in global politics and trade. The government will be able to focus on lowering debt loads by implementing tougher control over local government debt and developing “local contingency plans” to avoid debt load increases. It will also be easier for foreign investors to continue or start their businesses in China due to the planned removal of barriers, increased intellectual property security and the opening of mining, manufacturing and service industries to foreign investment.

Read the full on the New York Times website

China vows to 'make sky blue again' as it drops target for economic growth

With the lowered growth target, China’s Premier Li Keqiang has promised to address and reduce pollution from coal burning. Due to public discontent over smog, reducing pollution has become one of the top priorities for the Chinese government. A number of protests have also broken out in residential areas that contain garbage incinerators and chemical plants. As the Chinese middle class is becoming more vocal about the need to improve air quality, the government has promised to focus on upgrading coal-fired power plants and integrating renewable energy sources, while cutting down on surplus steel production and reducing economic growth targets. The Premier also promised fair and equal treatment of foreign companies, reduction of debt levels, improvement of incomes and consumer spending and maintaining trade stability. These targets are important to know about and adjust to when collaborating with the Chinese market.

Read the full article on The Independent website

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