CHINA CAN HIT GROWTH TARGET, SAYS PREMIER
Economy remains steady in second quarter, as domestic demand becomes key pillar
CHINA is capable of achieving its full-year growth target and controlling systemic risks despite challenges, said Premier Li Keqiang yesterday, adding that maintaining medium to high-speed long-term growth would not be easy.
Beijing targets economic growth of around 6.5 per cent, this year, compared with the 6.7 per cent pace delivered last year — the slowest in 26 years.
In a speech at the World Economic Forum, here, Li said the Chinese economy remains steady in the second quarter, as domestic demand has become a key pillar for the world’s second-largest economy.
“China’s economy in the second quarter maintained the first quarter’s steady and improving momentum. We are fully capable of achieving the main economic targets for the full year,” said Li.
“Currently, China also faces many difficulties and challenges, but we are fully prepared,” he said.
China’s economy, which grew a robust 6.9 per cent in the first quarter, generally remained on solid footing last month, but tighter monetary policy, a cooling housing market and slowing investment reinforced views that it will gradually lose momentum in coming months.
Beijing has been taking steps to identify and resolve financial risks, which remain generally under control, said Li.
Among those risks was high levels of debt, which recently prompted Moody’s to cut its sovereign credit rating on China.
Li said that the capital adequacy ratios and provisions for bad loans at Chinese banks were at relatively high levels.
“There are indeed some risks in the financial sector, but we are able to uphold the bottom line of no systemic risks,” he said.
“We are fully capable of preventing various risks and making sure economic operations will be within a reasonable range.” Li said Beijing will facilitate foreign investment by relaxing restrictions on how much overseas firms can own of China ventures and making it easier for them to register new companies locally.