China tries to reassure on economy, cuts growth target

BEIJING (AP) — China's leadership tried to quell anxiety about its slowing economy following financial turmoil and rising labor unrest as it cut its growth target Saturday and promised to open the oil and telecom industries to private competitors in sweeping industrial reforms.

A separate budget report released Saturday confirmed that military spending will rise 7.6 percent, which comes at a time of tensions with China's neighbors over disputed portions of the South China Sea.

The premier promised more measures to clean up China's badly polluted air, water and soil, and more spending on science and industrial research and development to create technology and better-paying jobs.

Chinese leaders are struggling to reassure the public and global markets about their ability to steer the world's second-largest economy following a plunge in stock prices and currency turmoil.

Spreading protests by laid-off workers have fueled questions about whether Beijing can manage its ambitious economic transition.

The party's reform plans require it to cut the dominance of state companies that dominate industries from banking and telecommunications to oil and steel, and give entrepreneurs a bigger role.

Li promised to open electric power, telecommunications, transportation, oil, natural gas and municipal utilities to private competition, though he failed to say whether foreign companies might be allowed in.

Business groups have complained that Chinese regulators are hampering access to promising sectors in violation of free-trading pledges.

China has the world's biggest population of Internet users, and investors are pouring billions of dollars into developing online and smartphone-based ventures for food delivery, movie ticketing, travel and other services.