China targets 8% growth despite complications

China has confirmed its 2010 economic growth target of 8% but the country "will still face a complicated situation," state media reported, citing Wen Jiabao’s work report presented to the National People’s Congress, the annual meeting of parliament. This year will be a "crucial but complicated" the report stated, highlighting the difficulties the government faces in keeping the economy at a sustainable level of growth while withdrawing from the massive stimulus package that supported the 8.7% rise in gross domestic product last year. "We must not interpret the economic turnaround as a fundamental improvement in the economic situation," Wen said, adding that China would maintain an appropriately easy monetary policy and an active fiscal policy. He said the government would also increase social spending by 8.8% and rural support spending by 12.8%. "Improving people’s well-being is the fundamental goal of economic development," said Wen. State media recently reported that China’s urban-rural income gap grew the most last year since the country’s opening-up policy in 1979.