Guangdong sets growth target of 9 per cent
But the forecast comes amid warnings of tough competition and protectionism
Guangdong Governor Huang Huahua has set a 9 per cent gross domestic product growth target for this year, while warning of rising competition at home and abroad, as well as increasing tendencies toward protectionism.
But he said the province's competitive edge had been sharpened by the Closer Economic Partnership Arrangement.
Delivering his work report at the opening session of the Guangdong People's Congress yesterday, Mr Huang also tipped an 11 per cent rise in retail sales, a 12 per cent increase in fixed asset investment, a 5 per cent rise in exports, and a 1 per cent rise in consumer prices.
He said the global economy was improving, with demand recovering and economic restructuring speeding up.
'But the global situation still looks complicated and there remains factors affecting recovery,' he said. 'Trade protectionism is strengthening and international competition is heating up. Domestically, provinces are developing fast and becoming competitors.'
Under such circumstances, there were opportunities - as well as challenges - for Guangdong, he said.
Guangdong is expecting to meet its trade target by adjusting its export tax rebate policy, diversifying manufacturing, and encouraging firms to increase output destined for foreign markets.
Mr Huang added India to the export markets his predecessor listed for attention last year, which included the Middle East, Africa, Latin America, Russia and the Association of Southeast Asian Nations.
He said the province would also need to conduct more studies to draw up strategies and measures when the transition period for the mainland's entry into the World Trade Organisation expires.
Last year, Guangdong set a 5 per cent growth target for its exports, but actual growth came in at a record-breaking 29 per cent.
Hong Kong Legislative Council member Hui Cheung-ching said it was an impressive performance, but 'whether it can be sustained will depend on the external environment'.
During his address, Mr Huang repeatedly mentioned Cepa, saying it had strengthened the Pearl River Delta's competitive edge.
Seeking to create favourable conditions for Hong Kong and Macau enterprises to enter the local market, he said Guangdong wanted to attract investment from the two regions in logistics, construction, commerce, exhibitions, legal services, accountancy and management services.
The province plans to start work on 140 construction projects with a total investment of 487 billion yuan, of which 82 billion yuan will be released this year.
Wu Yingxin, macroeconomics professor at Sun Yat-sen University, said barring unforeseen circumstances, Guangdong should exceed its GDP target and again register export growth of more than 20 per cent.
