China will put the brakes on its economic bullet train (2)

Economic data from the first quarter points to steady and balanced growth, which is in line with the government's goal of transforming the country's development mode, said Zuo Xiaolei, chief economist at China Galaxy Securities.
After relying on exports and government investments to fuel its economic growth for decades, China is taking steps to restructure its economy by emphasizing a domestically-driven, consumption-based system. This model promises more sustainable development, according to government officials and economists.
The biggest challenge China faces in the next five years is balancing investment and consumption, said Paul Sheard, global chief economist of Nomura Securities.
China's 12th Five-Year Plan, adopted in March, provides a rough road map for the country to follow. It outlines a series of policies and priorities which will support the evolution of China's economy over the next five years and beyond. The plan calls for lowering economic growth to 7 percent annually in exchange for greater sustainability and an improved quality of life for China's citizens.
Chinese President Hu Jintao said in a speech on April 15 at the Boao Forum for Asia (BFA), a non-governmental economic forum, that population, resources and the environment have put great pressure on China's economic and social development, and that there is lack of balance, coordination and sustainability in China's current development mode.
Hu said China will boost domestic demand over the next five years and put an effective mechanism in place to unleash consumption potential. Furthermore, the country will boost imports as part of its efforts to restructure its economy, he said.
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