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China sets new targets for economic growth

Last Updated: Thursday, November 8, 2012 - 13:59

Beijing: President Hu Jintao Thursday set a new target for China's economic growth, saying that China should double its 2010 GDP and per capita income for both urban and rural residents by 2020.

"On the basis of making China's development much more balanced, coordinated and sustainable, we should double its 2010 GDP and per capita income for both urban and rural residents (by 2020)," Hu said in a keynote speech at the opening of the 18th National Congress of the Communist Party of China (CPC).

This is the first time that per capita income has been included in the economic growth target set for 2020. Previous targets set at the 16th and 17th CPC National Congress merely called for the growth of GDP, not of per capita income, reported Xinhua.

To realize the economic target, Hu said the contribution of scientific and technological progress to economic growth should increase considerably and China should become an innovative country.

By 2020, China should have also basically accomplished industrialisation, significantly expanded IT application, markedly improved the quality of urbanization, Hu said.

Notable progress should also be made in modernising agriculture and the basic mechanism for promoting balanced development between regions should be in place, he said.

Talking about the increase of individual income, Hu said China must deepen reform of the income distribution system and increase individual income in step with economic development.

"We should raise the share of individual income in the distribution of national income and increase the share of work remuneration in primary distribution," Hu said.

A proper balance should be struck between efficiency and fairness in both primary and secondary distribution, with particular emphasis on fairness in secondary distribution, he said.

China should improve the primary distribution system to allow factors of production such as labor, capital, technology and managerial expertise to have their due share of income according to their respective contribution, and China should take speedy steps to improve the mechanism of adjusting secondary distribution mainly through taxation, social security, and transfer payments, he said.

China should deepen reform of the wage and salary system in enterprises, government bodies and public institutions, promote collective bargaining on wages in enterprises, and protect income earned through work, and increase proprietary individual income through multiple channels.

"We should improve the way in which income is distributed, protect lawful income, increase the income of low-income groups, adjust excessively high income, and prohibit illicit income," Hu said.


First Published: Thursday, November 8, 2012 - 13:55
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