China reaffirms 8% growth

China's premier told the National People's Congress that the nation expects to achieve 8 percent economic growth this year.

China's premier told the National People's Congress Thursday that the nation expects to achieve 8 percent economic growth this year.

Wen Jiabao also said in his annual report the nation expected 732 billion dollars in new lending this year, while keeping its currency stable.

He said the world's No.3 economy faced an unprecedented slowdown, but the 8 percent rate was essential to sustain wider employment across the nation of 1.3 billion.

(SOUNDBITE) (Mandarin with English translation) WEN JIABAO, PREMIER, CHINA, SAYING:

"It needs to be stressed that in projecting the GDP growth target at about 8%, we have taken into consideration both our need and ability to sustain development. in China, a developing country with a population of 1.3 billion, maintaining a certain growth rate for the economy is essential for expanding employment for both urban and rural residents, increasing people's incomes and ensuring social stability."

China intends to boost domestic consumption through government steps, including the blossoming auto sector.

Amid the global financial crisis that has also swept up China, Wen balanced optimism with a cautious note.

(SOUNDBITE) (Mandarin with English translation) WEN JIABAO, PREMIER, CHINA, SAYING:

"Demand continues to shrink on international markets. The trend toward global deflation is obvious and trade protectionism is resurging. The external economic environment has become more serious and uncertainties have increased significantly."

Still, some analyst say Chinese exports have collapsed recently, noting the impact on regional industrial centres and growing jobless, now seen rising to 9 percent.

Kitty Bu reporting for Reuters in Beijing.