China Prohibits Local Governments from Layering Higher GDP Growth Targets

Currently, provincial-level targets under China's 11th Five-Year Plan (2006-2010) generally exceed the central government's national growth goal by 1-2 percentage points. In response, the National Development and Reform Commission (NDRC) has issued a directive banning further decomposition of GDP growth targets to lower administrative levels (cities, prefectures, and counties), aiming to prevent excessive burdens.

The notice, titled Guidance on Scientifically Setting Economic Growth Targets for the 11th Five-Year Plan Period, warns of "serious consequences" if local governments implement and assess performance based on targets exceeding provincial plans. It mandates that sub-provincial jurisdictions set "scientific and reasonable" growth rates.

Crucially, the directive states: "No region should calculate its 11th Five-Year Plan growth rate backward simply to achieve a local per capita GDP of US3,000." It clarifies that China’s national goal—doubling its 2000 GDP and reaching approximately US3,000 per capita GDP by 2020—represents a collective national benchmark, not a requirement for every province, city, county, or township individually.

"Coordinated regional development should not be pursued merely by narrowing GDP gaps between regions or administrative levels," the notice emphasizes. The core objective is ensuring residents across all regions have equal access to basic public services and comparable living standards—a long-term strategic task requiring sustained effort.

An NDRC Planning Department official underscored ecological risks: excessive growth pursuits in environmentally fragile areas have already caused degradation. Implementing higher targets would "severely exceed ecological carrying capacities, exacerbate environmental damage, and ultimately weaken the nation’s overall sustainable development capacity."