China will "pursue better results in actual economic work", Premier Li said while addressing the country's rubber-stamp parliament, the National People's Congress (NPC), which has gathered in Beijing for its annual session.
"China has set its GDP growth target at around 6.5 per cent for 2017, compared with a target range of 6.5-7 per cent for 2016," according to the government work report.
The projected target is in line with both economic principles and realities, the report said, adding that it will help stabilise market expectations and facilitate the country's structural adjustments.
It will also contribute to achieving the goal of finishing the building of a moderately prosperous society in all respects, the report said.
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Defending his move to fix the 6.5 per cent target, Li said that it was important for China to maintain steady growth to ensure employment and improve people's lives.
China recently announced five lakh job cuts and promised to relocate those employees. Every year China produces over seven million graduates who join the job market.
"Considering our sound economic fundamentals and the capacity they bring for job creation, this target is attainable with hard work," the report said.
Li repeatedly paid tribute to Communist Party leader and President Xi Jinping and said that under the sound leadership of the party, the Chinese people had the courage and ingenuity to overcome all difficulties.
Li said the Chinese economy registered a slower but stable growth. The GDP last year reached 74.4 trillion yuan (over USD 11 trillion) representing 6.7 per cent.
Presenting the work report at the opening session of the NPC attended by President Xi and top leadership of the ruling Communist Party and over 2,900 lawmakers, Li said China will pursue a more proactive and effective fiscal policy with government fiscal deficit projected to be three per cent of its GDP.
Li said China will push its drive to cut overcapacity in bloated sectors, with targets to slash steel production capacity by around 50 million tonnes and coal by at least 150 million tonnes this year.