The main focus of attention is the 7 percent GDP growth target. That reflects a combination of factors: a shrinking working-age population; overcapacity in industry; and overstretched banks (which) means the country's growth capacity is not what it once was. A larger role for the job-intensive services sector means high employment can be secured at lower growth rates.

A more expansive fiscal policy and conservative monetary policy extend a trend already in place.

In February, the State Council promised to increase the effectiveness of fiscal policy in supporting growth. It also reflects the reality that banks are already overstretched though public debt is relatively low. Monetary policy has to be more restrictive, while fiscal policy still has space to support demand.