China's Five-Year Plan to peg growth at less than 7 percent

BEIJING, Oct. 26 (UPI) -- The Chinese Communist Party launched its four-day meeting to discuss its 13th Five-Year Plan, as China's economy hung in the balance due to a recent slump in the stock market and slowing growth.

The plan, a road map for Beijing that tackles issues of China's economic prosperity and institutional reforms, is likely to examine ways of adjusting to what Chinese President Xi Jinping has called the "new normal" for China's once booming economy for 2016-2020.

Liu Xuezhi, a Bank of Communication analyst, told the South China Morning Post Beijing is concerned about China's overreliance on manufacturing for growth and wants other sectors to play a greater role.

"Shifting the focus from labor-intensive manufacturing to services will be of great importance to the national economy," Liu said. "It's obvious that Chinese manufacturers are losing their competitive edge due to higher labor and land costs, and it is the services sector that could help those workers who lose jobs at manufacturing plants."

Beijing also is expected to reduce its annual target rate of growth during the meeting, which is to be attended by 350 members of the Central Committee of the Communist Party, and concludes on Oct. 29.

The Chinese Times reported the new rate is likely to range between 6.5-7.5 percent, and depending on global fluctuations could be adjusted up or down by 0.5 percentage points.

Chinese state media reported the rate would be adjusted to 6.5 percent for the next five years, down from its previous rate of 7 percent, set in 2010 at the meeting for the 12th Five-Year Plan. South Korean news agency Yonhap reported Beijing has plans to double the GDP per capita of the country from $9,000 in 2010, to $18,000 by 2020.