China to slash growth to 8%
China is planning to slash economic growth to 8% from 10.7% in a bid to rein in rampaging energy consumption and reduce environmental pollution. “We need to greatly improve the quality and efficiency of economic growth,” Premier Wen Jiabao said in a report presented to the Tenth National People’s Congress today. The PM’s message is targeted at provincial governments, who are said to be engaged in “blind” economic competition. They have been exhorted to focus on streamlining industrial growth and saving energy, Xinhua has reported. China’s crude oil imports alone amount more than 120M tonnes and Wei Jiafu, President and CEO of state-owned shipping giant Cosco estimates that at least 70 VLCC are needed for oil shipments. Most of these will have to be chartered in from foreign owners. Coal exports meanwhile have been controlled to meet domestic demand. The lower growth targets therefore are not expected to have a major impact on shipping, which is still riding China’s economic upsurge. Container operators expect double digit growth in export volumes of items such as textiles, shoes and electronic goods to continue.
