Foreign media focus on China's economic transformation

Edited and translated by People's Daily Online

China's government work report delivered in the annual two sessions of its top legislature and advisory body has always been a focus of international attention. International media are particularly interested in the 2012 development plan of the world's second largest economy, which has maintained rapid growth despite global economic woes.

Focus more on stability

"The Chinese economy, after nearly three decades of rapid, almost uninterrupted growth, seems to be settling down to a still strong but less blistering pace," The New York Times reported after China cut its minimum growth target for 2012 to 7.5 percent.

The growth target cut has caused massive stock market falls across the world. According to a Reuters report, U.S. stocks fell on Monday for the second straight session and the third in the last four trading days, led lower by basic materials and energy shares after China trimmed its growth target for 2012. The S&P 500 index opened lower that day. "That spooked everybody this morning. It started over in Asia, flowed right to Europe, and flowed right over here," said Ken Polcari, managing director at ICAP Equities in New York. In the face of a leadership transition, the Chinese government cut its growth target to 7.5 percent from the long-standing 8 percent goal, reflecting its focus on delivering economic stability while restructuring the economy and pursuing quality growth.

Major foreign media outlets have interpreted the 7.5 percent target from different perspectives. Japan's Mainichi Shimbun noted that the Chinese government has targeted 8 percent growth since 2005, and greatly increased public expenditure to ensure targeted growth amid the 2008 financial crisis. However, massive public expenditure could become a breeding ground for corruption, and lead to neglect of issues of major public concern such as rising price pressures and a defective social security system. Dow Jones Newswires reported that it signals Beijing's intention to focus more on the quality of economic growth and livelihood issues such as environmental deterioration and income inequality, rather than on the speed of future economic expansion. Kyodo News said that China lowered its growth target partly in order to curb local governments' decades-long obsession with GDP growth.