For 2016, the Chinese government has set a 6.5 to 7 percent economic growth target. (Photo : Getty Images)
The National Development and Reform Commission, China's top economic planner, is optimistic that the Chinese economy will recover and reach a reasonable growth rate, according to a report by China Daily.
"Predictions of a hard landing are destined to come to nothing. . . . Rest assured, this possibility does not exist," Xu Shaoshi, head of the commission, said at a news conference held on Sunday, March 6.
"We are confident and capable of keeping the economic growth rate within a reasonable range," Xu added.
Xu also assured the public that China would continue to contribute to the growth of the world economy.
For 2016, the Chinese government has set a 6.5 to 7 percent economic growth target. It's the first time in over two decades for the government to do so, when it usually sets a specific rate instead of a range. It's a response to the slowest economic expansion the country has experienced yet in a quarter of a century: a 6.9 percent growth rate in 2015.
"The government has plenty of ammunition to resist downward pressure, and we are also constantly replenishing the policy toolbox," Xu said.
The head of the commission also admitted that there are tough times ahead for the Chinese economy, but all will prevail.
Consumption may be the key to achieving the set range, as the government continues to stimulate consumption in the country. In 2015, consumption contributed 66.4 percent to Chinese economic growth. This year, retail sales of consumer goods are predicted to rise by approximately 11 percent.
Aside from stimulating consumption, the government is also planning to boost effective investment. To come up with a guide investment that covers the next three years, Xu said a reserve pool for key projects has already been set up.
Through this pool, processes for the approval and eventual completion of projects will be streamlined, creating a cycle of investment that will help strengthen structural reform and develop new growth engines.
"Effective investment should meet the requirement of 'killing three birds with one stone,'" Xu said.
