Xi says shuns fixation on GDP as Chinese economy slows

With the slowing Chinese economy causing ripples at home and abroad, President Xi Jinping today said focus should not be fixated on growth rates alone but on the quality of growth.
Playing down the economic slowdown of the world's second largest economy, Xi told the Boao Forum for Asia in Boao town in south China's Hainan island today that the Chinese economy is highly resilient and has enough room to leverage a host of policy tools.
"When looking at China's economy, one should not focus on growth rate only," Xi said.
"We will focus on improving quality and efficiency, and give even greater priority to shifting the growth model and adjusting the structure of development," he said.

"As the economy continues to grow in size, around 7 per cent growth would be quite impressive, and the momentum it generates would be larger than growth at double digits in previous years," Xi said.
China is shifting gear from high speed to medium-to-high speed growth, from an extensive model that emphasised scale and speed to a more intensive one emphasising quality and efficiency, and from being driven by investment in production factors to being driven by innovation, he said.

The Chinese economy grew 7.4 per cent last year, the lowest pace in 24 years and this year its growth rate was expected to go below 7 per cent.

Despite the slowdown, Xi said China's labour productivity increased 7 per cent and its energy intensity declined 4.8 per cent on a year-on-year basis.
The share of domestic consumption in GDP rose, the services sector expanded at a faster pace, and the economy's efficiency and quality continued to improve, Xi said.
China will import more than USD 10 trillion of goods in the coming five years, marking continued opportunities brought to the world, he said.
"Chinese economy will continue to bring more opportunities of trade, growth, investment and cooperation for other countries in Asia and beyond," he said.
In the coming five years, Chinese investment abroad will exceed USD 500 billion and more than USD 500 million outbound visits will be made by Chinese tourists, he said.

"China will stick to its basic state policy of opening up, improve its investment climate, and protect the lawful rights and interests of investors," Xi said.