Wen Says China to Lower Growth Target – WSJ.com
2011 March 2
China's Premier Wen Jiabao said the government wants slower economic growth to avoid inflation and to restructure the economy, even as much of the developed world is struggling to accelerate expansion.
While official targets routinely underestimate growth, the move is nonetheless an important signal that government priorities in the world's No. 2 economy are shifting to reduce dependence on exports and capital-intensive industries in favor of creating conditions for more domestic demand.
China's stunning rise has come through huge investment in capital-intensive industries like steel and by turning itself into the world's factory floor, manned by workers who migrate to coastal cities from impoverished rural areas. But China's growth rate of more than 9% a year over the past three decades has come with steep costs: heavy pollution, a sharp increase in inequality and pervasive corruption.
While official targets routinely underestimate growth, the move is nonetheless an important signal that government priorities in the world's No. 2 economy are shifting to reduce dependence on exports and capital-intensive industries in favor of creating conditions for more domestic demand.
China's stunning rise has come through huge investment in capital-intensive industries like steel and by turning itself into the world's factory floor, manned by workers who migrate to coastal cities from impoverished rural areas. But China's growth rate of more than 9% a year over the past three decades has come with steep costs: heavy pollution, a sharp increase in inequality and pervasive corruption.
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