Premier Li Keqiang, in his annual speech to the nation, warned Thursday that China would have to overcome economic inefficiencies, excess capacity and impediments to private enterprise if it were to maintain healthy rates of growth.
In his state-of-the-nation report to the National People’s Congress, the Communist Party-run legislature, which meets in full session once a year, Mr. Li lowered the target for economic growth to “approximately 7 percent” and announced new policies and programs that he said would encourage a more robust private sector to create jobs and foster innovation, moving the country away from its dependence on government-led infrastructure investment, heavy industry and low-end exports.
Mr. Li acknowledged in his opening remarks that the transition would weigh on total growth and would face challenges.
“China’s economic development has entered a new normal,” Mr. Li said. “Systemic, institutional and structural problems have become ‘tigers in the road,’ holding up development. Without deepening reform and making economic structural adjustments, we will have a difficult time sustaining steady and sound development.”
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