China has sent a strong signal that it is no longer chasing breakneck growth, aimed to expand its economy by 7.5 percent this year, unchanged from last year.<br /><br />Policymakers are promising to pursue more sustainable expansion by reducing the pace of investment to its lowest level in a decade and waging “war” on pollution.<br /><br />The world’s second-largest economy wants to reform everything from finance to the environment, even while creating jobs and wealth.<br /><br />Xu Shaoshi, the newly installed head of central planning for China, said: “This year, new breakthroughs are expected for administrative reform to perfect the market system, we will carry out reforms of state-owned enterprises, financial and tax reform, urban and rural integration reform, and other reforms in key areas by building an open economic system, and an ecological civilization.”<br /><br />He explained that means shutting factories, encouraging private investment and cutting government red-tape. <br /><br />The rebalancing of the economy comes after 30 years of red-hot double-digit growth.<br /><br />That’s lifted millions out of poverty but also saddled China with worrying levels of debt and badly polluted its air and water.<br /><br />In his State of the Union style address to an annual parliament meeting, Prime Minister Li Keqiang, said: “Fostering a sound ecological environment is vital for people’s lives and the future of our nation.”<br /><br />He added the fact that “pollution has become a major problem is nature’s red-light warning against the model of inefficient and blind<br />development”. <br /><br />Proposed changes include shutting down coal-fired furnaces, boosting non-fossil fuel power and scrapping high-emission cars. <br /><br />Steel and cement makers – China’s largest air polluters – will have their capacity cut, but in fact many are closing anyway due to falling demand. <br /><br /> “Now, it is easy to impose environmental controls because 90 percent of steel mills are losing money,” said Xu Zhongbo, a Beijing-based consultant in the metals sector.
