A restaurant in Yiwu, Zhejiang province. The Chinese government is devoted to developing the service industry to stimulate domestic consumption. Lyu Bin / For China Daily

In his first work report to the National People's Congress, Premier Li Keqiang set China's GDP growth target at about 7.5 percent for the third straight year in 2014 and pledged to continue economic reforms.

China's economy was described as being at an inflection point, where the paths upward are "particularly steep" amid domestic and foreign challenges.

"The foundation for steady economic growth is not yet firm, while the internal momentum for growth needs to be stronger," Li said.

The world economy still faces instability and uncertainties, as macroeconomic adjustments by some countries introduce new variables, while emerging economies face new difficulties and challenges, he said.

Domestically, Li cited risks from public finance and banking, overcapacity, difficulties in exercising macroeconomics and increasing agricultural output and rural incomes as major challenges.

Li spoke of a long list of challenges. Can China meet them?

With fresh signs of economic weakness in February, will China be able to achieve its 7.5 percent growth goal?

With a 7 percent-plus growth rate, can China succeed in changing its economic model based on exports and investment?

The answer is probably yes to all three questions, for three reasons.

Infographic: Five key words from Li's govt report

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