China to counter economic challenges with 'triple-double'(2)

Thanks to investment amounting to 1.15 billion yuan (187 million U.S. dollars) over the past few years, the company has found success with a new piece of industrial machinery that users can monitor through smartphones. Its sales, up 40 percent year on year, have defied the gloom suffered by peers.

"It is high time that China's traditional industries upgrade themselves to compete with global powerhouses," Guan said.

"Be it technological innovation, industrial upgrades, environmental protection or urbanization... all these things have great growth potential. If China takes advantage of its strength and uncovers new potential by enhancing investment and technology input, it is poised to achieve a medium-high-level growth rate, said Justin Yifu Lin, a CPPCC member and the former senior vice president of the World Bank.

MASS ENTREPRENEURSHIP: NEW ENGINE FOR GROWTH

Calling for a culture of entrepreneurship and innovation to be nurtured, Premier Li said that individuals and enterprises must have the mettle to develop their businesses and make innovations.

Unlike most Chinese graduates that prefer big city jobs to those in quieter places, Li Xia, a 23-year-old graduate from east China's Anhui Agricultural University, chose a career in farming.

In partnership with two classmates, Li contracted farmland to grow greenhouse vegetables, which turned out to be profitable. With the proceeds, Li plans to expand the business and experiment with improved crop varieties.

"In order to incite entrepreneurship and startups, the government needs to refine policies that ensure fair treatment, favorable financial and tax conditions, and basic social safety benefits for starters," Li Xia said.

China has been pressing ahead with reforms targeted at cutting red tape and creating a pro-business environment. Simpler business registration rules saw new registered businesses reach 13.34 million in 2014, up nearly 18 percent year on year.

CHINA'S BALANCE ON GROWTH AND REFORMS

Observers said China is currently pressured by both the need to stabilize economic growth and the urgency of structural reforms. As the economy enters of a period of lower, stabilized growth after its breakneck boom of past decades, it requires the balancing skills of a gymnast.

Amid tough challenges, the growth target this year was set 0.5 percentage points lower than that of last year. In 2014, the economy grew 7.4 percent, registering its weakest annual expansion since 1990.

"In order to usher in a new growth engine, the government needs to leave ample space for those who wish to innovate or set up businesses. The government should further simplify administrative procedures and decentralize power," said Zhang Tiemin, a deputy to the 12th National People's Congress, the top legislature.

Kamel Mellahi, a strategic management professor at the UK's Warwick Business School, said China needs bolder reforms in order to foster vigorous entrepreneurship and innovation.

He also warned that China faces a middle-income trap if it fails to achieve its balancing act.