Chinese lawmaker urges innovation-driven growth

"There is no need to stimulate domestic demand via employing a large number of stimulus policies if we accept the current rate," Cai said.

According to State Council's reports, the country's economic growth hit 7.6 percent in the first six months, higher than the annual target, while its consumer price index (CPI), a main measure of inflation, saw a "moderate and controllable" rise.

Zhang added that the country needs to keep its CPI at a "stable and controllable" level so that ordinary people's living will not be affected by increasing living expenses.

Zhou Haibo also believed it is important to rein in the CPI. "After all, what common people care most about is the price of their living necessities," he said.

Solution to economic problems

At Thursday's panel discussion, NPC deputies examined economic risks that they believe could affect growth.

Local governments are ignoring overcapacity in some industries and approving expansion, legislators said. To address the issue, NPC deputy Wang Mingwen proposed tightened approval of new projects.

Legislators also underlined growing local government debt, fearing such debt will increase the credit risk of banks. Local government debts are currently being audited and the results are yet to be published.

NPC deputy Yao Sheng believes local government debt would be better managed under the supervision of local legislatures.

Local governments will have to pay off a lot of debt in the next three years, said legislator Yin Zhongqing, who wants to regulate local government finances to prevent mismanagement and fraud.

Many legislators drew attention to soaring housing prices. According to the report on budget implementation, in the first seven months, the revenue generated from state-owned land sales registered a year-on-year increase of 49.4 percent.

Legislator Yin Zhongqing warned of the systemic risk of the real estate industry. Yin proposed "letting the air out of the real-estate bubble," a reform of property tax and strict management of land sales.

Lawmakers also called for ecological and environmental protection. "Ozone has been ignored because of the focus on PM 2.5," said Liu Zhengkui.