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Government and Policy

Chinese provincial govts lower GDP targets

(Xinhua)
Updated: 2010-02-01 22:28
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BEIJING: Chinese provinces are scaling back economic growth targets for 2010 as the nation works to make its economic development more environmentally friendly.

At its annual legislative meeting, southern China's Guangdong province set a growth target of 9 percent, lower than its estimated 9.5 percent expansion in 2009.

The eastern province of Jiangsu earlier set a goal of 10 percent growth, down from the estimated 12.4 percent growth of last year.

Neighboring Zhejiang Province, which relies heavily on exports, is aiming for 9 percent growth. Zhejiang governor Lu Zushan told lawmakers that 30 consecutive years of double-digit growth rate will stop.

Zhejiang's economy grew at the second-slowest rate of 31 mainland provinces, autonomous regions and municipalities in the first quarter of 2009. But the rate accelerated to 8.9 percent for the year after a double-digit expansion in the second half.

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The lower growth targets were set at the annual sessions of local legislatures, after China recorded strong growth in 2009 on the back of a massive fiscal stimulus package and a surge in bank loans.

Twenty-six provinces, autonomous regions and municipalities reported double-digit growth last year, compared with the national average of 8.7 percent.

"There has never been a stronger call to give up some GDP growth to transform the growth model," said Sun Wenyou, Huzhou City's party chief.

The Central Economic Conference and local legislatures have prioritized a shift to quality economic growth.

On January 28, National Bureau of Statistics head Ma Jiantang said the central government will scrutinize local GDP figures by using a unified calculation to prevent provinces from faking their economic figures.

The central government's move shows it is serious about transforming the form of China's economic growth, Zhuo Yongliang, director of Zhejiang Province's Development and Reform Research Institute, said.

"Governments should use guidance to tackle structural problems like the imbalance between domestic and external demand and imbalances between the industrial and service sectors."

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