China sets its GDP growth target at around 8 percent this year, according to the government work report to be delivered by Premier Wen Jiabao on Saturday.

"Our main purpose is to create a good environment for transforming the pattern of economic development, and to guide all sectors to focus their work on accelerating economic restructuring and raising the quality and results of development as well as on increasing employment, improving the people's well-being and promoting social harmony," reads the report.

Inflation picked up in China after two years of reckless monetary expansion and is worsened by imported liquidity from the U.S. quantitative easing policy.

China raises the annual inflation target to around 4 percent in 2011 from last year's 3 percent, according to the report handed out to the media before the opening of the fourth session of the 11th National People's Congress (NPC), China's top legislature.