At the annual parliamentary session in early March, Chinese authorities reiterated that 2015 is going to be another crucial year for comprehensive and sweeping economic/social reforms in China. Apart from that, China aims to achieve: 1) economic growth of 7.0 percent; 2) inflation at 3.0 percent; 3) additional 10 million jobs on an unemployment rate of 4.5 percent or less; and, 4) 6-percent growth in international trade value. It is noteworthy that China's economic expansion target of 7.0 percent this year is even lower than that in 2014 when it hit a 24-year low at 7.4 percent. This humble target is a result of ongoing anxiety about deep-rooted economic problems faced by the nation.
Since the beginning of this year, China has exhibited signs of stuttering economy. Sluggishness is particularly obvious in the manufacturing sector, which is the nation's main growth-engine. Despite numerous risks, China remains steadfast towards keeping economic growth at appropriate levels while pressing ahead with reforms. KResearch holds the view that China probably will have other new tools to help shore up its economy in 2015, projecting that the state will likely miss its target by a whisker, only expanding around 6.9 percent.
Within the foreseeable future, if China can overcome its existing structural problems with the help of development strategies that highlight regional development cooperation, e.g., implementation of its Silk Road Economic Belt, and the 21st Maritime Silk Road, its growth should improve. China has also set out to pursue a “Made in China 2025” strategy that is intended to restore Chinese products' poor image of being low in quality by incorporating sophisticated technology. With these constructive measures, it is expected that China's economy will gain some momentum over the long run amid a rapidly changing trade and investment landscape.