Chinese premier Li Keqiang said the country needed annual growth of at least 6.53 per cent in the next five years to meet the government’s goal of establishing a “moderately prosperous society”. China would aim for “medium-high economic growth” (6-7 per cent) over the next five years.
Consistent with the comprehensive reform package unveiled at the Third Plenum in 2013, the guidelines for the 13FYP provide more detail. Most were well telegraphed such as the retirement of the one-child policy, rural land reform, urbanisation measures and SOE reform.
China aims to increase investment in innovation and entrepreneurship, while also looking to raise domestic consumption. Beijing also pledged to double China’s 2010 GDP and per capital income for both urban and rural residents by 2020.
China wants to boost the fertility rate so that by 2050, the labor force in China will increase by about 30 million, and the rate of the ageing will decrease 1.5 per cent.
The current fertility rate level would see a decrease in the labor force of about 150 million. China needs about 7 to 9 million more babies each year from current levels of 16 million per year.
In the next five years, China will adopt vigorous measures to promote mass entrepreneurship and innovation and the “Internet Plus” plan to encourage new technologies, businesses and industries. Innovation is the cradle of newly emerged companies and products in China. China’s UC Browser, launched in India in 2010, currently occupies the biggest share (40 per cent) of the Indian mobile phone browser market. Many Indians are using WeChat to keep in touch with their friends, in both India and China.
Last year, the trade volume between China and Germany was over $200bn and that between China and the US amounted to $555bn. From 2011 to 2014, China attracted paid-in FDI of about $500bn. And its overseas investment reached $116bn in 2014, almost doubling the 2011 figure.
In the 13th five-year plan, more external resources will be invited to China and, at the same time, the “Going Out” strategy will be enhanced. China’s investment overseas is likely to grow at an annual rate of 15 per cent and reach $1.5 trillion cumulatively.