The draft outline of the Five-Year Plan,
With an ambitious "above 6.5 percent" average growth target for the period, it is obvious
The growth target is in line with a call by President Xi Jinping in November, when he said "a minimum 6.5 percent annual average growth" is needed to ensure these goals will be met before 2020.
Achieving such growth will not be easy. On the one hand,
The difficulties go beyond realizing admirable economic expansion. Racing toward the proposed targets without compromising the government's reform promises may be more difficult.
Economic pundits have long hoped that
Xi's government has shown greater tolerance for slower growth, as evidenced by a consistent downgrading of GDP targets since 2013 when he assumed presidency.
This year's growth target is within the range of 6.5 and 7 percent, slowing from last year's aim of "around 7 percent." The central government has also reduced the weighting of GDP when assessing the performance of local officials.
The latest proof of commitment to reform:
"Dramatic development causes pervasive problems, and
In an ideal scenario, new growth drivers grab the baton from old ones and propel growth seamlessly. However, Domestic consumption and services are not mature enough to pick up the slack.
Michael Spence, a Nobel prize winner in economics, told Xinhua while the biggest challenge is to keep growth in the neighborhood of 6.5 and 7 percent before 2020, the completion of structural changes and supporting reforms are more important.
While it remains to be seen how
Supply-side reform, innovation, technological upgrades, market competition, more efficient state-owned enterprises and low fossil-fuel dependency have all been given pride of place in the latest five-year plan.
"The
A report on the "Made in China 2025" initiative for British companies to work with Chinese companies will be released at a CBBC forum on innovation later this month in the port city of
Chen Qihua, vice president of Caterpillar Inc. and chairman of Caterpillar China, said the higher premium China has placed on innovation, smart manufacturing and energy saving means more collaboration opportunities for the company.
"We are optimistic about
Given the inherent hit-or-miss nature of innovation, however, patience is also advised.
"Innovation doesn't work the way low-cost manufacturing does," Kuhn said. "Innovation cannot be legislated. An innovation-based economy must accept failure as a necessary part of the process."
"The most effective and robust policy to facilitate