China faces difficulty meeting economic targets: state planner head
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Xu Shaoshi, head of the National Development and Reform Commission (NDRC) gestures as he speaks during a press conference on the sideline of National People's Congress in Beijing, China March 6, 2016. REUTERS/Damir Sagolj
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
BEIJING (Reuters) - China will need "arduous efforts" to meet annual economic targets, with the economy expected to be under continued pressure in the second half of the year, the Xinhua news agency reported on Wednesday citing the head state planner.
The comments from Xu Shaoshi, head of the National Development and Reform Commission (NDRC), come as China's economy shows signs of stabilizing, but concern remains as to the sustainability of growth driven by government investment and the property market.
Xu, however, said he was confident China "could meet major annual targets in economic growth, employment, commodity prices and residents' income", according to the state news agency.
"Great difficulties remain in meeting goals for investment and trade," Xinhua quoted Xu as saying.
"Currently, the foundations for stable economic development are not solid enough and downward pressure remains large, with difficulties hard to underestimate."
Despite the weakest economic growth in 25 years, government sources have said policymakers do not see the need to reduce interest rates or bank reserves amid evidence companies and banks are hoarding cash.
The focus instead has been on structural reform and fiscal measures.
"China will continue to design and implement targeted and flexible macro-control measures, and pursue a proactive fiscal policy and a prudent monetary policy," Xu said, according to Xinhua.
On the fiscal front, finance minister Lou Jiwei said China was considering higher export rebates for some mechanical and electrical products, Xinhua reported.
Xu cited regional polarization, difficulties with farmers' incomes and stable demand growth, and potential risks in finance and employment, as challenges facing the economy.
(Reporting by Elias Glenn; Editing by Jacqueline Wong)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Australia police probe firearms death during making of hip hop video
- China urges Trump administration to fully grasp importance of 'one China'
- Singapore to prop up Southeast Asia's muted IPO market in 2017
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!