News / Economy

Chinese Premier Says Economic Reforms to Advance

FILE - Man touches statue of a charging bull similar to New York's Wall Street Bull, in Shanghai, China, Feb. 7, 2012.
FILE - Man touches statue of a charging bull similar to New York's Wall Street Bull, in Shanghai, China, Feb. 7, 2012.
Reuters
Chinese Premier Li Keqiang pledged on Wednesday to push ahead with reforms, with financial system change at the center of his agenda, noting that the world's second-largest economy was stable but there was a need to guard against risks.
 
Li also said in a speech to government leaders and company executives at the World Economic Forum in the northeastern port city of Dalian that China will keep its monetary policy stable even if capital markets show volatility.
 
"China is at a critical stage of restructuring and updating its economy," Li said. "China's economic fundamentals are good and economic operations are stable.
 
“China can only sustain economic growth by transforming its growth model. Financial reform is one of the important parts of China's economic structural reform,” he added, noting that convertibility of the yuan currency and interest rate reform will be the focus.
 
"But we should also be aware that the foundation of economic recovery is not yet solid and there remain many uncertain factors. We should not lower our guard against downside risks and must make all necessary preparations to conquer difficulties and challenges."
 
Li, who took office this year, has an ambitious plan to restructure China's economy away from credit, investment and export driven growth to one where consumers provide the main impetus.
 
He has said he will accept slower growth rates in order to push ahead with reform, though has had to introduce policies to stabilize the economy after a sharper-than-expected slowdown threatened to derail the reform push.
 
Recent economic data has shown some of the impact of those policies, with factory output in August hitting a 17-month high and retail sales growing at their fastest pace this year.
 
"The major economic indicators for July and August, ranging from PMI, PPI, industrial output, trade to power generation and cargo freight, have all improved and the urban employment continued to increase, inflation remained stable, market sentiment is boosted," Li said. "This growth momentum makes us confident to say that China is able to achieve the growth target for this year."
 
The government's target is 7.5 percent.
 
Li has rejected the idea of using stimulus to push growth, mindful of the risk of a debt overhang should too much money flow into the economy. Total social financing, a measure of liquidity in the economy, surged in August, pointing to strong demand for credit.
 
"On the fiscal policy front, we will not expand our fiscal deficit but will improve the expenditure structure by cutting administration fees and increasing spending in some key areas, such as western regions, social welfare projects and smaller firms," he said.
 
"As for monetary policy, we will not relax or tighten the monetary stance and the main focus will be on using well the existing pool of liquidity to support the real economy and structural reform," Li said, adding that China would handle any money market volatility "calmly."

You May Like

Could Nemtsov Threaten Putin in Death as in Life?

Dynamic and debonair opposition leader had supported liberal economic reforms, criticized Russian president's aggression in Ukraine More

Oil Smuggling Highlights Challenges in Shutting Down IS Finances

Pentagon spokesman says Islamic State 'certainly continues to get revenue from the oil industry black market' but that airstrikes have made a dent More

India Focuses on Infrastructure, Investment to Propel Economy

Government expects economy to grow at 8 to 8.5 percent in next fiscal year More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Supreme Court Hears Hijab Discrimination Casei
X
Katherine Gypson
February 25, 2015 11:30 PM
The U.S. Supreme Court has heard opening arguments in a workplace religious discrimination case that examines whether a clothing store can refuse to hire a young woman for wearing the headscarf she says is a symbol of her Muslim faith. Katherine Gypson reports from the Supreme Court.
Video

Video US Supreme Court Hears Hijab Discrimination Case

The U.S. Supreme Court has heard opening arguments in a workplace religious discrimination case that examines whether a clothing store can refuse to hire a young woman for wearing the headscarf she says is a symbol of her Muslim faith. Katherine Gypson reports from the Supreme Court.
Video

Video Falling Gas Prices Hurt Nascent Illinois Hydraulic Fracturing Industry

Falling oil prices are helping consumers purchase cheaper petroleum at the pump. But that’s made hydraulic fracturing or “fracking” less economically viable for the companies in the United States invested in the process. VOA’s Kane Farabaugh reports on one Midwestern town that was hoping to change its fortunes by cashing in on the next big U.S. oil boom.
Video

Video Fighting in Sudan's South Kordofan Fuels Mass Displacement

Heavy fighting in Sudan's South Kordofan state is causing hundreds of thousands to flee into uncertain conditions. Local aid organizations estimate as many as 400,000 civilians have been internally displaced since the conflict began more than three years ago, while another 250,000 have fled across the border to refugee camps in South Sudan. VOA's Adam Bailes reports.
Video

Video Lao Dam Project Runs Into Opposition

A Lao dam project on a section of the Mekong River is drawing opposition from local fishermen, international environmental groups and neighboring countries. VOA's Say Mony visited the region to investigate the concerns. Colin Lovett narrates.
Video

Video A Filmmaker Discovers Her Biracial Identity in "Little White Lie

Lacey Schwartz grew up in an upper middle-class Jewish family, in a town in upstate New York where almost everyone she knew was white. She assumed that she was, as well. Her recent documentary, Little White Lie, tells the story of how she uncovered the secret of her true racial background. VOA’s Carolyn Weaver has more on the film.
Video

Video Deep Under Antarctic Ice Sheet, Life!

With the end of summer in the Southern hemisphere, the Antarctic research season is over. Scientists from Northern Illinois University are back in their laboratory after a 3-month expedition on the Ross Ice Shelf, the world’s largest floating ice sheet. As VOA’s Rosanne Skirble reports, they hope to find clues to explain the dynamics of the rapidly melting ice and its impact on sea level rise.
Video

Video US-Cuba Normalization Talks Resume Friday

Negotiations aimed at normalizing diplomatic relations between the U.S. and Cuba resume Friday. On the table: lifting a half-century trade embargo and easing banking and travel restrictions. There's opposition in Congress, but some analysts say there may be sufficient political and economic incentives in both nations for a potential breakthrough this year. VOA's Mil Arcega reports.
Video

Video Pakistan's Deadline For SIM Registration Has Cellphone Users Scrambling

Pakistani cell phone users have until midnight Thursday to register their SIM cards, or their service will be cut off. While some privacy experts worry about government intrusion, many Pakistanis are just worried about keeping their phone lines open. VOA Deewa reporter Arshad Muhmand has more from Peshawar.
Video

Video Myanmar Warns Factory Workers to End Strikes

Outside Myanmar's main city Yangon, thousands of workers walked off their jobs earlier this month demanding a doubling of their wages, pay raises after a year and input from labor unions on industrial regulations. Since Friday, the standoff has grown more tense as police moved in to disrupt the sit-ins, resulting in clashes that injured people from both sides. VOA correspondent Steve Herman visited industrial zones which have become a focus of Myanmar's fledgling workers rights movement.
Video

Video Oscar Winners Do More Than Thank the Academy

The Academy Awards presentation is Hollywood’s night to reward the best movies from the previous year. It’s typically a lot of glitter, a lot of thank you’s, a lot of speeches. But many of this year’s speeches carried messages beyond the thank you's. VOA’s Carolyn Presutti takes a look.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.8896
JPY
USD
119.26
GBP
USD
0.6475
CAD
USD
1.2451
INR
USD
61.816

Rates may not be current.