Caijing: The GDP growth target for this year has been set at 7.5%. I would like to ask: is it just a temporary cut in the growth speed or is it more of a permanent one? Does it mean that this will be the end of China's high economic growth period? Secondly, the international community has, to some extent, placed the hope of tiding over the financial crisis on China's strong economic growth. How will the downward adjustment of China’s growth target affect the global economic recovery?
Wen: After I delivered the government work report, the highest attention from media organizations across the world has been paid to the annual growth target of China. I believe they have put their interest on a very important issue. For years, we have set the average annual growth target of the Chinese economy at around 8%, but this year we have set the target at 7.5%. This is because we want to shift China's economic growth towards the progress in science and technology and the higher educational level of the Chinese labor force. We hope that China's economy will achieve a high-quality growth and our economic development will serve the primary goals of making structural adjustments to China’s economy and shifting our growth model. We hope that China's economic development will no longer come at the costs of resource consumption and environmental pollution. Rather, we will be able to put China's economic growth on a path that is conducive to energy conservation and the protection of the eco-environment. We hope that China's economic development will deliver greater benefits to the Chinese people.
We have already made this decision in the formulation of the 12th Five-Year Plan. We have set the average annual GDP growth during the 12th Five-Year Plan period at 7%. By setting this year's growth target at 7.5%, we want to bring it in line to fit the requirements set out during the 12th Five-Year Plan period for the economic growth in China. At the same time, I'd like to say that the economic slowdown in China is mainly the result of our proactive macro control. One should recognize that China's economy is under downward pressure due to the contraction of the external market caused by the European debt crisis. Under such circumstances, we have taken the decision of adjusting downward China's GDP growth target, mainly because we want to continue to press ahead with our economic structural adjustment.
With respect to the target of GDP growth this year, it is the consensus among the economists, experts, scholars, and the media organizations from many countries around the world that this is actually a piece of good news for the world because if we in China can truly overcome the problem of lack of adequate balance, coordination and sustainability in our economic growth and get Chinese economic growth on the path of quality development, this, in a fundamental way, is good news for the development of global economy.
We must continue to strike a balance among maintaining steady and robust economic development, making economic structural adjustments and managing the inflationary expectations. China's economic aggregates now total around RMB47 trillion. That is a very large base figure. On top of such a large base figure, 7.5% GDP growth target is not a low target. If we can maintain such a growth rate while our economic aggregates continue to rise, this target cannot be considered low at all. Moreover, we need to work even harder to enhance our economic growth efficiency so that more benefits will be extended to the Chinese people. We have confidence that we will be able to do that.