Market News International (United States):
My question is about the GDP growth target of 6.5 percent. If the economy turns grim and fails to achieve 6.5-percent, what measures will you implement to ensure the growth target? In addition, the Government Work Report said that, this year, you will continue to promote the marketization of the yuan's exchange rate while preserving its international standing. Do you have actual measures already in place?
Huang Shouhong:
The Government Work Report said that this year's growth target is around 6.5 percent, but added that we would "seek better results in actual work." It means that we fully considered the complexity of the international environment, along with rising uncertainty and instability, and we also took into account domestic supply-side structural reform as well as the requirements for raising the quality and efficiency of the overall economy, before we came up with the 6.5-percent target for GDP growth, while retaining hope of better results in actual work.
This leaves some room for development, deepening reform and advancing restructuring. The current elasticity coefficient shows that each percent of GDP growth will create 1.9-2.0 million new jobs. Therefore, the 6.5-percent growth rate will satisfy the need of employment by creating more than 11 million new jobs.
The target is also well connected with the requirement to "comprehensively build a moderately prosperous society".Calculations suggest that, in the next few years, as long as the average growth rate remains above 6.4 percent, or close to 6.5 percent, it can satisfy the demand of the "two doubles", meaning that, by 2020, GDP and per capita income for both urban and rural residents will double the 2010 level.
The bottom line in regard to growth, as we have kept saying, is that the growth should be kept within a reasonable range. At the very least, the aim is to ensure employment. As long as we don't have any difficulty in ensuring employment, both a slightly higher or lower growth rate is acceptable.
As for your question about what measures and approaches we will take under special circumstances, I'd like to say we are fully equipped with innovative measures, as before. For example, this year's deficit-to-GDP ratio is three percent, same as last year. Many sides have suggested the government should raise the ratio. The reason we stayed at threepercent is that it is considered as adequate to sustain the overall economic growth while also leaving room for a buffer in case of any special situation. We follow the same approach for other things, too.
The Chinese economy features resilience, potential and advantages. It is particularly capable of balance along with ways to defend and respond to all sorts of risks. China's economic development will never experience what's called a "hard landing," or prolonged stagnation; instead, it will maintain long-term medium-to-high growth.
As for the yuan's exchange rate, the People's Bank of China and other authorities in charge of this matter have already made their statements. The basic conditions of the Chinese economy define that the yuan's exchange rate will remain basically stable at a reasonable level, given that this stability has all-round support. Therefore, the premier said we should continue to reform the exchange mechanism to make it more market-oriented, and keep the yuan basically stable at a reasonable and balanced level. We have such conditions for that. Thank you!
I would like to take this opportunity to make a point that the future is bright for China's economic development. I suggest those who hold a gloomy view should do their homework, by making a comparison between the pessimistic tones and China's actual situation. Then, they could analyse why claims the Chinese economy would go downward or even collapse are unfounded.
The Chinese economy is very complex. Traditional Western economics, development modes in other countries and even past Chinese patterns do not apply. It's because in China today, we have plural driving forces as well as measures of response to risk. In other words, the Chinese economy is well supported.
When you observe the Chinese economy, if you only see one industry or only see one place, then your conclusion may not be consistent with the reality. I sincerely wish you to conduct more reports about the real China, the changing China and the fast-progressing China, and, in return,bring to us the good, positive, beneficial things from the international community,
Mao Zedong once wrote in a poem: "the mountain goddess dwelling by the Yangtze River may have stayed unchanged over time/but she will certainly feel amazed that the world has already changed." I'm sure you are familiar with it. Quoting Mao's stanza, I think the same goddess would be amazed when considering the miracles China has accomplished in the past, achievements deemed by others to be impossible.
China will continue to reach its grand objective through each "small goal". China is certain to achieve better development, providing its people with more benefits and contributing more to the world. Thank you all!
Hu Kaihong:
Thank you, Mr Huang. That ends the briefing.