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.
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

Beijing Warns US on S. China Sea Patrols

Warning follows news reports Thursday that US military is planning to sail warships close to artificial islands Beijing has been aggressively building More

Indian PM Calls for Unity Amid Tense Climate Over Beef Attacks

Recent series of beef-related incidents seen as signs of rising intolerance toward Muslims and other religious minorities More

Why These Are New York City's Most Treasured Spaces

Under threat of jail time and fines, some New York property owners are not allowed to renovate their spaces without prior approval More

This forum has been closed.
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.
House Republicans in Chaos as Speaker Favorite Withdrawsi
Jim Malone
October 09, 2015 12:32 AM
The Republican widely expected to become the next speaker of the House of Representatives shocked his colleagues Thursday by announcing he was withdrawing his candidacy. The decision by Majority Leader Kevin McCarthy means the race to succeed retiring Speaker John Boehner is now wide open. VOA National Correspondent Jim Malone reports.

Video House Republicans in Chaos as Speaker Favorite Withdraws

The Republican widely expected to become the next speaker of the House of Representatives shocked his colleagues Thursday by announcing he was withdrawing his candidacy. The decision by Majority Leader Kevin McCarthy means the race to succeed retiring Speaker John Boehner is now wide open. VOA National Correspondent Jim Malone reports.

Video German, US Officials Investigate Volkswagen

German officials have taken steps to restore some of the reputation their car industry has lost after a recent Volkswagen diesel emissions scandal. Authorities have searched Volkswagen headquarters and other locations in an effort to identify the culprits in the creation of software that helps cheat on emission tests. Meanwhile, a group of lawmakers in Washington held a hearing to get to the bottom of the cheating strategy that was first discovered in the United States. Zlatica Hoke reports.

Video Why Are Gun Laws So Hard for Congress to Tackle?

Since taking office, President Barack Obama has spoken out or issued statements about 15 mass shootings. The most recent shooting, in which 10 people were killed at a community college, sparked outrage over the nation's gun laws. But changing those laws isn't as easy as many think. VOA's Carolyn Presutti reports.

Video Hungary Criticized for Handling of Refugees

Amnesty International has accused Hungary of breaking multiple international and European human rights laws in its handling of the refugee crisis. As Henry Ridgwell reports, thousands of migrants and refugees continue to travel through the Balkans to Hungary every day.

Video Iraqi-Kurdish Teachers Vow to Continue Protest

Sixteen people were injured when police used tear gas and rubber bullets to disperse teachers and other public employees who took to the streets in Iraq’s Kurdish north, demanding their salaries from the Kurdish Regional Government (KRG). VOA’s Dilshad Anwar, in Sulaimaniya, caught up with protesting teachers who say they have not been paid for three months. Parke Brewer narrates his report.

Video Syrian Village Community Faces Double Displacement in Lebanon

Driven by war from their village in southwestern Syria, a group of families found shelter in Lebanon, resettling en masse in a half-built university to form one of the biggest settlements of its kind in Lebanon. Three years later, however, they now face being kicked out and dispersed in a country where finding shelter as a refugee can be especially tough. John Owens has more for VOA from the city of Saida, also known as Sidon.

Video Bat Colony: Unusual Tourist Attraction in Texas

The action hero Batman might be everyone’s favorite but real bats hardly get that kind of adoration. Put more than a million of these creatures of the night together and it only evokes images of horror. Sarah Zaman visited the largest urban bat colony in North America to see just how well bat and human get along with each other.

Video Device Shows Promise of Stopping Motion Sickness

It’s a sickening feeling — the dizziness, nausea and vomiting that comes with motion sickness. But a device now being developed could stop motion sickness by suppressing certain signals in the brain. VOA’s Deborah Block reports.

Video Making a Mint

While apples, corn, and cranberries top the list of fall produce in the US, it’s also the time to harvest gum, candy, and toothpaste—or at least the oil that makes them minty fresh. Erika Celeste reports from South Bend, Indiana on the mint harvest.

Video Activists Decry Lagos Slum Demolition

Acting on a court order, authorities in Nigeria demolished a slum last month in the commercial capital, Lagos. But human rights activists say the order was illegal, and the community was razed to make way for a government housing project. Chris Stein has more from Lagos.

Video TPP Agreed, But Faces Stiff Opposition

President Barack Obama promoted the Trans-Pacific Partnership on Tuesday, one day after 12 Pacific Rim nations reached the free trade deal in Atlanta. The controversial pact that would involve about 40 percent of global trade still needs approval by lawmakers in respective countries. Zlatica Hoke reports Obama is facing strong opposition to the deal, including from members of his own party.

Video Ukranian Artist Portrays Putin in an Unusual Way

As Russian President Vladimir Putin was addressing the United Nations in New York last month, he was also being featured in an art exhibition in Washington. It’s not a flattering exhibit. It’s done by a Ukrainian artist in a unique medium. And its creator says it’s not only a work of art - it’s a political statement. VOA’s Tetiana Kharchenko has more.

VOA Blogs

World Currencies


Rates may not be current.