China cuts growth forecast to 6.5 percent but will avoid 'hard landing'

China has cut its growth forecast for 2016 to "6.5% to 7%", but Beijing denied the country will suffer the hard landing that some fear.

On Saturday, premier Li Keqiang said the gross domestic product from the People's Republic would slow from the previous 7% guidance as the country "will face more and tougher problems and challenges in its development this year, so we must be fully prepared to fight a difficult battle."

Having recorded growth of 6.9% in 2015, Li said growth over the next five years would average 6.5%.

Speaking to parliament as part of the annual legislative session on Saturday, Li said: "This is the crucial period in which China currently finds itself and during which we must build up powerful new drivers in order to accelerate the development of the new economy."

On Sunday, the leader of the country's economic planning department, the Development and Reform Commission, was resolute that the 'hard landing' could be averted through the many weapons still available in Beijing's economic armoury.

"China’s economy absolutely will not have a hard landing, the so called hard-landing predictions are bound to fall through," Xu Shaoshi told reporters.