Statements from China’s President Xi Jinping indicate that fast economic growth is not all that the Chinese government cares about. President Xi recently stated that officials should not be judged only on their progress in boosting China’s GDP.
The Xinhua News Agency reported that Xi instead discussed what the Communist Party should be focusing on including improving people’s quality of life, the environment, and social development.
In May, Xi also commented that China is not going to sacrifice the environment just to increase short-term growth. At the same time, China is experiencing its worst credit crunch in more than a decade, so they are reevaluating things.
In Germany in May, Premier Li Keqiang announced that growth of 7 percent was needed to double China’s per capita by 2020 from 2010. Over the last decade, growth had been an average of 10.5 percent per year.
According to Goldman Sachs Group (NYSE:GS), China’s credit crunch problems increase the likelihood that they will miss that 7.5 percent target for annual growth. China’s top banking regulator Zhou Xiaochuan announced that China’s banks have built up sufficient reserves, so lenders’ operations should not be disrupted.
Even though China’s economic growth has slowed, officials such as People’s Bank of China governor Zhou Xiaochuan have tried to reassure the public that China’s growth will not continue to decelerate. Zhou said he was confident about China’s future.
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