China sets 2017 growth target at 6.5%

China on Sunday set the economic growth target for 2017 at 6.5%, a 25-year low, as it accommodates uncertainties including rising global protectionism and challenges facing its unbalanced real estate and commodities markets, according to Caixin. Premier Li Keqiang set out the target as he vowed to continue the nation’s painful reform process that includes capacity reductions in oversupplied sectors like steel and coal, and closure of efficient state-run companies. That marked the least ambitious goal in 25 years, since a 6.0% target for gross national product (GNP) growth was set in 1992. Last year, the government set its GDP growth projection at a more rigid range of 6.5%-7%. The economy ultimately grew at 6.7% for the year. This year’s target is “realistic” and will “help steer” and stabilize expectations and allow room for structural reforms, Li said. But he also warned of “complicated and graver” situations this year.