China targets 7% growth



NEW YORK (CNNMoney) -- The Chinese government on Friday issued a target growth rate of 7% for the next five years -- still impressively fast, though a comedown from recent years when growth has topped 11%.

China, the world's fastest-growing economy, is trying to avoid overheating: Inflation there jumped 4.9% in January, driven by a more than 10% increase in food prices. Some also worry about a building boom that has driven up property prices.

The government also forecasted a big rise in household income, which would gain more than 7% during the next five years.

The forecasts were made as part of the Chinese government's "Outlines for the 12th Five-Year Plan on National Economic and Social Development," a document the government submitted to the National People's Congress for approval.

As Western economies have struggled to regain their footing following the financial crisis of 2008, China plowed ahead, and has helped support the rest of the global economy. China now holds more than $1 trillion in U.S. Treasuries.

China recently passed Japan as the world's second-largest economy, though remains a distant second to the United States, at roughly a third of the size.

-- CNN Producer Steven Jiang contributed to this report.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,232.02 -53.72 -0.29%
Nasdaq 5,089.36 -1.43 -0.03%
S&P 500 2,126.06 -4.76 -0.22%
Treasuries 2.22 0.03 1.37%
Data as of 7:35pm ET
Company Price Change % Change
Bank of America Corp... 16.75 0.02 0.12%
Apple Inc 132.54 1.15 0.88%
Hewlett-Packard Co 34.76 0.93 2.75%
AT&T Inc 34.71 -0.36 -1.03%
Microsoft Corp 46.90 0.00 0.00%
Data as of May 22
Sponsors

Sections

Remember when Comcast, the nation's largest cable operator, tried to buy Time Warner Cable? Now Charter, the third largest, is poised to do so. More

The True Cost, a new documentary, chronicles the evils of the clothing industry and asks us to stop buying so much cheap stuff More

Google filed a patent for a toy that will have sensors and cameras, and can control connected devices. More

Sarah Kauss launched S'well to rid the world of plastic water bottles. In five years, she's sold 4 million of her stainless steel bottles. More