And this week comes news that, though the International Monetary Fund sees China coming close to target this year, it expects it to slow to 7. 1 per cent growth in 2015 and slow further in following years.
Cai says the main reason Chinese policymakers care so much about the rate of growth in GDP is their belief that the economy needs to grow by at least 7. 2 per cent to absorb 10 million new entrants to the labour market each year.
Last year, for instance, the services sector contributed 47 per cent of the annual growth in GDP, whereas the industrial sector contributed less than 40 per cent.
After averaging growth of 10 per cent a year for 30 years, China’s economy is now struggling to achieve its reduced target of 7. 5 per cent.
Euromonitor International estimates that this year private consumption will account for 68 per cent of GDP in the US, compared with 37 per cent in China.
Read more here: SMH