'Two sessions' anticipated amid new political, economic landscape(2)

ECONOMIC "NEW NORMAL"

The Chinese leadership has pinned much hope on more decisive reforms to counter the downward pressure on the world's second-largest economy, which has slowed down to a state of "new normal".

The term "new normal" gained ground in China in May 2014, when President Xi, during an inspection tour of central China's Henan Province, described the need to adapt and remain cool-headed as growth slows.

In the 35 years between 1978 and 2013, annual growth of the Chinese economy averaged close to 10 percent and, between 2003 and 2007, it was over 11.5 percent. However, the "good old days" had to end. Growth decelerated to 7.7 percent in 2012 and 2013.

In 2014, China's gross domestic product (GDP) surpassed 10 trillion U.S. dollars by growing 7.4 percent, against the government-set growth target of "around 7.5 percent", registering its weakest annual expansion since 1990.

The new normal means adjusting to slower growth. More importantly, it also means more sustainable and efficient growth for several decades to come -- at least, that is the aim.

Zheng Xinli, deputy director of the China Center for International Economic Exchanges, said the Chinese economy still has much growth potential since its GDP per capita stood at no more than 7,500 U.S. dollars in 2014.

"There are systemic barriers which constrain the development of China's productivity, so we should unleash growth potential through further reforms," according to Zheng.

The Chinese government is likely to lower its GDP growth target for 2015 to "around 7 percent", he said, joining a wave of experts guessing the government-set growth target.

Over recent months, Chinese and global financial institutions have been closely watching the Chinese economy and some have been speculating about the growth target for 2015, which will be announced by Premier Li Keqiang in the government work report at the opening of the NPC on March 5.

"We expect a 7- to 7.5-percent GDP target... Despite a lower GDP growth target, growth supporting policies are expected to be rolled out continuously as Beijing still sees stable growth as a needed backdrop for the ongoing reforms," said HSBC chief China economist Qu Hongbin.