Top leaders see difficulties, challenges for economy

China's top leaders on Thursday pointed out difficulties and challenges facing the country, saying macro policies should be stabilized and control over micro segments loosened with better social security measures.

The message by the top decision-making body of the Communist Party of China (CPC) came at a special session held Thursday morning by the Standing Committee of the Political Bureau of the CPC Central Committee to study the country's economic situation amid an economic slowdown.

China needs to cement its domestic economic growth momentum and guard against potential risks in financial sectors, according to a statement released after the meeting, which was presided over by Xi Jinping, the CPC Central Committee General Secretary.

Top leaders were also concerned about factors that are still affecting the stability in agricultural production, as well as "outstanding problems" relating to environmental pollution and food and drug safety, according to the statement.

Even though economies have flooded the global markets with massive increases in liquidity, the world economy still lacks an adequate dynamic for development under the impact of the global financial crisis and subsequent sovereign debt crises that repeatedly undermine market confidence, it said.

The message followed a slowdown in the world's second-largest economy in the first three months, when China's economic growth eased to 7.7 percent in the January-March period, a pace that was lower than expected but higher than 7.5-percent expansion targeted by the government for the full year.

While focusing on improving the quality and efficiency of economic development, the country should keep a proactive fiscal policy and prudent monetary policy while making them more targeted, it said.

Greater efforts are needed to bring out the potential of domestic consumption, the statement said, adding that the central government will remove or delegate power to approve investment projects in some areas and strictly limit the indiscriminate expansion of energy-inefficient and polluting industries.

China will increase the imports of energy, resources, advanced technologies and equipment, while open up further the sectors of finance and logistics, and support outbound investment in key areas and important projects.

The meeting also pledged to accelerate the establishment of a standard local government financing mechanism after an explosive growth of local debts in recent years have raised concerns about the financial health of the Chinese economy.

The leaders also urged efforts to do a good job on matters concerning people's livelihood, endowment insurance system, development of the real estate sector and building of affordable housing.