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

Multimedia Obama Defends Immigration Action

Obama says with his executive action on immigration, enforcement resources will be focused on 'felons, not families; criminals, not children' More

US-Led Airstrikes in Syria Kill Over 900: Monitoring Group

British-based Syrian Observatory for Human Rights says the toll includes more than 50 civilians, five of them women and eight of them children More

Report: Obama Broadens US Combat Role in Afghanistan

The New York Times says resident Barack Obama has signed a classified order extending the role of US troops in Afghanistan for another 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.
New Skateboard Defies Gravityi
X
November 21, 2014 5:07 AM
A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Gay Evangelicals Argue That Bible Does Not Condemn Homosexuality

More than 30 U.S. states now recognize same-sex marriages, and an increasing number of mainline American churches are blessing them. But evangelical church members- which account for around 30 percent of the U.S. adult population - believe the Bible unequivocally condemns homosexuality. VOA's Jerome Socolovsky reports that gay, lesbian, bisexual and transgender evangelicals are coming out. Backed by a prominent evangelical scholar, they argue that the traditional reading of the bible is wrong.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Mexico Protests Escalate Over Disappearances

Protests in Mexico over 43 students missing since September continue to escalate, reflecting growing anger among Mexicans about a political system they view as corrupt, and increasingly tainted by the drug trade. Mounting outrage over the disappearances is now focused on the government of President Enrique Pena Nieto, accused of not doing enough to end insecurity in the country. More from VOA's Victoria Macchi.
Video

Video US Senate Votes Down Controversial Oil Pipeline - For Now

The U.S. Senate has rejected construction of a controversial pipeline to transport Canadian oil to American refineries. The $5 billion project still could be approved next year, but it faces a possible veto by President Barack Obama. As VOA’s Michael Bowman reports, the pipeline has exposed deep divisions in Congress about America’s energy future.
Video

Video Can Minsk Cease-fire Agreement Hold?

Growing tensions between government troops and separatists in eastern Ukraine further threaten a cease-fire agreement reached two months ago in the Belarusian capital of Minsk. Critics of U.S. policy in Ukraine say it is time the Obama administration gives up on that much-violated cease-fire and moves toward a new deal with Russia. VOA's Scott Stearns has more.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.
Video

Video Ferguson Church Grapples with Race Relations

Many white residents of Ferguson, Missouri, say they chose to live there because of the American Midwest community's diversity. So, they were shocked when a white police officer killed an unarmed black teenager in August – and shaken by the resulting protests and violence. Some local churches are leading conversations on how to go forward. VOA’s Ayesha Tanzeem reports.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8050
JPY
USD
117.90
GBP
USD
0.6376
CAD
USD
1.1259
INR
USD
61.655

Rates may not be current.