China signals focus on reforms and leaner, cleaner growth

China aimed to expand its economy by 7.5% this year, but stressed that this level of growth would not get in the way of reforms: Li Keqiang

China sent its strongest signal yet that its days of chasing breakneck economic growth are over, promising to wage a “war” on pollution and reduce the pace of investment to the slowest in a decade as it pursues more sustainable expansion.

In a State of the Union style address to an annual parliament meeting that began on Wednesday, Premier Li Keqiang said China aimed to expand its economy by 7.5 per cent this year, the highest level among the world’s major economies, but stressed that this level of growth would not get in the way of reforms.

In carefully crafted language that suggested Beijing had thought hard about leaving the forecast unchanged from last year, Li said the world's second-largest economy will pursue reforms stretching from the environment to the financial sector, even as it generates sufficient growth to support incomes and employment.

After 30 years of red-hot double-digit growth that has lifted millions out of poverty but also polluted the country's air and water and saddled the country with ominous debt levels, China is trying to change tack and rebalance its economy.