Premier Li Keqiang delivered the government work report during the opening meeting of the third session of China’s 12th National People’s Congress (NPC) at the Great Hall of the People in Beijing, March 5, 2015. He set out China’s GDP growth target of 7% in 2015. Some asked whether 7% growth is enough for China?

First, the growth target of 7% is set up according to the fact that China's economy is developing. The country is engaged in economic restructuring and updating. It is difficult for China to maintain a sustainable and sound growth as its growth is not stable and needs restructuring and updating. As long as the economy keeps growing at a certain speed, the country can ensure low unemployment, sound incomes, and solid industrial production and management.

7% is a target guiding China's economy to step into the "new normal" phase. For many years China has set its growth target at 8%. More recently the target was lowered to 7.5%. Local governments are still pursuing high economic growth even though some places have already enjoyed rapid economic growth. Although the new target is below the real economic growth of past years, setting such target conforms to the rules of economic development. It demonstrates that China is taking a more reasonable and rational attitude to its economic development and the government is determined to update and improve its economy in the long run.

The new target takes into account social capacity. China has a colossal economy. Since the current base is large, each percentage point of economic growth contributes significantly to employment and living standards. However, each percentage point of growth also means the country has to consume huge volumes of natural resources. If a higher target is set, marginal benefits will diminish. As long as the economy stays at around 6.7% growth, China can double the size of its economy in a reasonable timeframe.

China continues to contribute to world economic development even with a goal of 7%. This will maintain sustainable development and expand domestic demand. China's economy will continue to be one of the drivers for the world economy. Moreover, its urbanization will release huge investment and consumption so the country will provide a huge market for the world.

This article was edited and translated from 《7%增速：有益中国，有益世界》, source: People's Daily Overseas Edition, Author:Shi Jianxun