China Lowers Growth Targets

[interestrateripoff]

http://www.telegraph.co.uk/finance/economics/8350674/China-lowers-growth-targets.html

Wen Jiabao reduced China's annual growth target from 8pc to 7pc for the next five years in an effort to curb soaring food and housing prices.

In an online "chat" with his nation's citizens, Mr Wen said: "We want to put the emphasis of our work on the quality and the benefits of economic growth. We want the fruits of development to benefit the people."

Mr Wen said China must become more self-sustainable by increasing domestic consumption and reducing its reliance on exports and investment.

Analysts said that while Mr Wen's message was clear, the lower growth target was principally a symbolic gesture because China has exceeded its previous 8pc target every year for the last six years. Last year growth reached 10.3pc, making China the fastest-growing major economy in the world.

Alistair Thornton, China analyst for IHS Global Insight, said: "The roadmap is clear, but the extent to which the political will and power is sufficient remains to be seen."

Kenneth Jarrett, head of APCO Worldwide's China consultancy, said: "No one will really have 7pc as their target. Everyone's going to be higher than that. [but] the message is that they want growth to slow down."

Mr Wen acknowledged that the gap between China's official rate of inflation and the cost of food and housing is making life difficult for hundreds of millions of Chinese people.

Officially inflation is running at almost 5pc, but food prices are climbing at an annual rate 10pc, according to figures released in January.

"Rapid price rises have affected the public and even social stability," Mr Wen said, in the online forum which was broadcast across all state media in China. "The Party and Government have always made a priority of keeping prices at a generally stable level."

With inflation pushing 10% is China really having any growth?

[OnlyMe]

http://www.telegraph.co.uk/finance/economics/8350674/China-lowers-growth-targets.html

With inflation pushing 10% is China really having any growth?

Good question.

With real inflation in double digits here just don't ask the same question about out GDP!

Mind you the trade gap and imports have been "growing" nicely.

[PopGun]

Too late.

No point confronting a bush fire with a watering can.

[_w_]

http://www.telegraph...th-targets.html

China Lowers Growth Targets can no longer "blindly" pursue unsustainable expansion ...

... and so reduces its planned growth from the blindly unsustainable 8% pa to a measured and harmonious 7%...

With inflation pushing 10% is China really having any growth?

Only to the extent that there are still a few jobs left in the West to be offshored but that won't last very long.

[Sledgehead]

Mr Wen acknowledged that the gap between China's official rate of inflation and the cost of food and housing is making life difficult for hundreds of millions of Chinese people.

Merv : "WTF IS HE THINKING!?!?"

Mr Wen said China must become more self-sustainable by increasing domestic consumption and reducing its reliance on exports and investment.

Merv : "Wen says it and everyone agrees. But when I suggest the self same thing .... "

Edited February 28, 2011 by Sledgehead