China cuts 2017 growth target to 6.5%, warns of dangers of global trade controls
BEIJING — China’s top economic official trimmed the country’s growth target and warned Sunday of dangers from global pressure for trade controls as Beijing tries to build a consumer-driven economy and reduce reliance on exports and investment.
In a speech to the national legislature, Premier Li Keqiang promised more steps to cut surplus steel production that is straining trade relations with Washington and Europe. He pledged equal treatment for foreign companies, apparently responding to complaints Beijing is trying to squeeze them out of technology and other promising markets.
Li’s report set the growth target for the world’s second-largest economy at “around 6.5 percent or higher, if possible.” That is down from last year’s 6.7 percent expansion but, if achieved, would be among the world’s strongest, reflecting confidence efforts to create new industries are gaining traction.
The premier called for attention to the risks of China’s surging debt levels, which economists see as a rising threat to growth.
Li announced no major initiatives, but that was widely expected as the ruling Communist Party tries to avoid shocks ahead of a congress late this year at which President Xi Jinping is due to be given a second five-year term as leader. Analysts expect Chinese leaders to use the legislative meeting to emphasize reducing financial risks and keeping growth stable.
At a time of demands in the United States and Europe for trade controls, Li warned China faces “more complicated and graver situations” at home and abroad.
“Both the de-globalization trend and protectionism are growing,” Li said. “There are many uncertainties about the direction of the major economies’ policies and their spillover effects, and the factors that could cause instability and uncertainty are visibly increasing.”
Chinese leaders have publicly defended free trade in response to President Donald Trump’s promises to raise duties on Chinese goods, though Beijing’s trading partners complain China is the most closed major economy.
