Government says strong second half will secure China’s 7.5% growth target

BEIJING – China’s National Development and Reform Commission has affirmed that China will meet its 7.5% growth target as set in the Government Work Report, saying that positive economic factors - including stronger external demand and the dividends of reform - are likely to emerge in the second half of this year.

The statement came as some economists become increasingly doubtful whetherChina can achieve its growth target.

Premier Li Keqiang promised in the report to push ahead a slew of reform initiatives, including further cutting administrative review and approval for businesses, pushing forward hybrid ownership in the State-owned sector, and reform of the fiscal and taxation systems.

The economy is seen to face several challenges, including massive excess capacity in some industries, mounting local government debt, slowing growth in property prices, and risks in the financial sector.

Premier Li, NDRC Chairman Xu Shaoshi, and Finance Minister Lou Jiwei have all reiterated their confidence in the economy over recent few days. However, in order to reach their goal, observers say China’s leaders may have to sacrifice some economic reforms - and curbs on pollution.