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"To achieve this year's development targets, there is little room for stimulus policy or direct government investment, so it also must rely on market mechanisms," the premier said at a Cabinet meeting, according to a government statement. Instead, he called for less "political power" in the economy to "motivate the creativity of market players," the statement said, without giving any details of possible changes. Reforms would take time, making them "negative for growth and jobs in the near-term," said Citigroup's Shen. China's growth still is stronger than the low single-digit expansions forecast in the United States, Europe and Japan. And dismay about its latest performance might reflect overly rosy forecasts and a narrow focus on economic output when Beijing also has other priorities such as improving social services and cleaning up China's battered environment. But the impact of weaker factory production and less construction in the world's second-largest economy is starting to show at home and abroad. Ni Shaoqing, the owner of a company in Shanghai that decorates restaurants and other businesses, said demand is weak because fewer companies are opening new outlets, while labor costs are rising. He said this year's profit will be down at least 20 percent. "I expect fewer projects this year," said Ni, 49. "It is not the hardest year, but not an optimistic one, for sure." A decline in China's voracious demand for iron ore and other raw materials is hurting Australia and other commodity exporters that prospered from its boom. Australian coal producers have cut jobs due to declining prices. "The biggest risk is clearly, from our perspective, what happens in China," the chief financial officer of mining giant BHP-Billiton Ltd., Graham Kerr, said in April. In an effort to show official concern about employment, Xi took the unusual step Tuesday of visiting a job fair for university students in Tianjin, east of Beijing. Nearly 7 million university students graduate in July and as of April only 28 percent in Beijing and 29 percent in Shanghai had found jobs, according to the official Xinhua News Agency. "Without economic growth, the employment issue can't be solved," the president said in Tianjin, according to Xinhua.
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