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Xi says environment for economic development isn’t optimistic

BEIJING - Chinese President Xi Jinping said the environment for economic and social development next year isn’t optimistic, in a signal that leaders may be willing to accept slower growth, Bloomberg News reported on Tuesday, citing Xinhua news agency.

BEIJING - Chinese President Xi Jinping said the environment for economic and social development next year isn’t optimistic, in a signal that leaders may be willing to accept slower growth, Bloomberg News reported on Tuesday, citing Xinhua news agency.

All of society should be allowed to feel “tangible benefits” from reforms, Mr Xi said at a symposium on Nov 22, according to Xinhua. Mr Xi’s comments, which echoed past statements by party officials, may reflect efforts to tamp expectations for growth in 2014.

While industrial investment is picking up and the Ministry of Commerce says retail sales will rise more than 13 per cent this year, China faces headwinds that include factory overcapacity, excessive corporate debt and slower export demand.

“While the overall situation is good, the environment for economic and social development next year is not optimistic,” Xinhua reported, paraphrasing remarks made by Mr Xi. He said reform should be integrated into all sectors.

China may set its 2014 gross domestic product growth target at 7 per cent, down from 7.5 per cent this year, the Economic Information Daily said on Tuesday, citing research groups. Economists estimate growth in gross domestic product will slow to 7.5 per cent next year from 7.6 per cent this year, according to the median projection in Bloomberg News surveys last month.

Premier Li Keqiang said in October that China needs annual growth of 7.2 per cent to keep unemployment stable after indicating in July his “bottom line” for expansion was 7 per cent.

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