Beijing to make growth main target

The central government is unlikely to relax its tight grip on the mainland property market before the National People's Congress meeting this month.

Beijing is expected to lower its gross domestic product growth target for this year to 7.5 per cent at the meeting, while maintaining consumer price inflation at 4 per cent.

Banks expect a higher growth rate, and the lower forecast means that the government would step up economic reforms that could boost domestic consumption, amid contracting export demand from developed economies in the West.

Though local governments and the real estate industry have repeatedly called for the relaxation of property tightening measures, the central government does not appear to be wavering.

Instead of easing property policies, other measures that would help boost domestic spending power, such as tax cuts and the income distribution system, should be hot topics at the NPC meeting.

Although financial reforms might not be at the top of the agenda, Lam said the government could hasten the liberalization of interest rates by launching pilot schemes among selective banks, and gradually encourage them to develop consumer loan products in order to stimulate domestic spending.

E-business is growing fast now and e-business has contributed a lot to the economic growth in China.
B2B e-business is mainly relating to foreign trade business, so SMEs can have more chances to find good overseas orders, manufacturing will be boosted accordingly.