China to counter economic challenges with 'triple-double'

Analysts have borrowed a basketball statistical concept to characterize the versatility that China will have to show to ensure a proper growth rate and upgrade the economy after the government lowered the annual growth target for 2015 to around 7 percent.[Special coverage]

The government plans to focus on achieving the three objectives of maintaining a medium-high-level growth rate and moving toward a medium-high-level of development; maintaining policy continuity and keeping expectations stable while progressing structural reforms; and driving development through entrepreneurship and innovation, paired with increased public goods and services supplies.

These references made by Premier Li Keqiang Thursday as he delivered the annual government work report have been summarized by analysts as a "triple-double," a term that describes a basketball player's record in a game in three of five statistical categories: points, rebounds, assists, steals, and blocks.

"Faced with an economic slowdown, the triple objectives [talked of by the premier] will boost confidence. Aiming for a medium-high-level of growth and development makes a statement that China's economic momentum will not weaken despite adjustment," said Zhu Jianmin, a member of the National Committee of Chinese People's Political Consultative Conference (CPPCC), the country's top political advisory body.

GROWTH POTENTIAL FROM OLD ENGINE

Once dubbed the world's factory, China rose to become the world's No. 2 economy with underpinning by exports and investment, the old engines.

But the status is no reason for cheer. Per capita public infrastructure investment in China is only 38 percent of that in Western Europe and 23 percent of America's. The tertiary industry to GDP ratio is l0 percentage points lower than other developing countries. Meanwhile, the urbanization rate is 20 percentage points lower than developed countries.

"Gaps indicate more room for improvement. The bridging of these gaps, meanwhile, will unleash tremendous momentum for economic growth," said Guan Xiyou, chairman of Shenyang Machine Tool (Group) Co., Ltd., one of the country's leading machinery companies since the founding of New China in 1949.

Despite its pedigree, the company has more recently been a case study of the kind of upgrades to traditional industries that the government is encouraging in order to revitalize Chinese industry for the modern age.