Rebalance 'less important' than innovation

So, the ratio between consumption of 55 percent of GDP and investment of 37 percent of GDP will be in a reasonable range, similar to what was seen in Japan and South Korea from the 1960s to the 1970s.

Infographic: Five key words from Li's govt report

Yuan exchange rate's floating range widened

"There are no ready theories in economics telling us what the optimal ratio is, and it is unrealistic to compare the ratios in China and in the US," said Cai.

"Analysts should know the stories behind the statistics before arriving at any conclusions about the Chinese economy."

Statistical problems regarding investment in China lie in both quantity and quality. Decelerating investment growth in some new projects shouldn't be interpreted as a sign that China is succeeding at transforming its economic growth model. Rather, it's a warning to the nation - similar to a lack of business confidence - about the urgency of creating a sound market for quality investments.

Liu Qiao, a finance professor at Peking University, noted: "Government debt is a cause of the decline of investment.

"To improve the quality of investment, the government must change its ways of raising funds, boost investment efficiency and reduce intervention in the market."

At the same time, Cai said it's "more dangerous to stimulate Chinese people's consumption through artificial means, rather than promoting investment intentionally, as some recent crises were caused by excessive consumption."

Innovation, he said, should be the real engine of the economy, instead of investment, consumption and exports.

Chen Yuyu, a professor of applied economics at Peking University, said: "Investment should focus on creating jobs, at least 20 million each year, in the 100 biggest cities in China in the next five years."

For sustainable growth, investment should go into the real economy, especially the private economy, service sector and public services.

The government needs to remove barriers to capital flows through reform, which will mean greater efficiency, Chen said.

Urbanization should be for people's sake

Experts: GDP growth target reasonable