Chi­nese Pre­mier ex­presses con­fi­dence in econ­omy China com­mit­ted to main­tain­ing China-EU, China-UK ties

Pakistan Observer - - ECONOMY WATCH -

Cur­rency Sell­ing Buy­ing TIANJIN—Pre­mier Li Ke­qiang de­nied the pos­si­bil­ity of the Chi­nese econ­omy suffering a hard land­ing as he ad­dressed the An­nual Meet­ing of the New Cham­pi­ons 2016, or Sum­mer Davos, in Tianjin on Mon­day. “We can de­liver the ma­jor tar­gets of eco­nomic and so­cial de­vel­op­ment set for 2016,” he said at the open­ing cer­e­mony of the fo­rum for busi­ness peo­ple and lead­ers of rapidly emerg­ing economies. The Chi­nese econ­omy con­tin­ued to grow sta­bly in the sec­ond quar­ter of the year, fol­low­ing a 6.7-per­cent ex­pan­sion in the first three months, said Li.

New eco­nomic driv­ers are de­vel­op­ing rapidly and ma­jor eco­nomic in­di­ca­tors are sta­bi­liz­ing or im­prov­ing, ac­cord­ing to the pre­mier. In the first five months, 5.77 mil­lion ur­ban jobs were cre­ated. The un­em­ploy­ment rate in 31 ma­jor cities was 5.02 per­cent in May. “We are op­ti­mistic about the econ­omy now and in the fu­ture,” said Li. China’s eco­nomic fun­da­men­tals are un­changed, and the gov­ern­ment will keep macro poli­cies con­stant and sta­ble, said Li. “Gen­er­ally speak­ing, the eco­nomic struc­ture is op­ti­miz­ing. The qual­ity of growth is im­prov- ing. Mo­men­tum is gath­er­ing,” he claimed.

But the pre­mier cited weak ex­ter­nal de­mand, slug­gish pri­vate and man­u­fac­tur­ing in­vest­ment, TIANJIN: Chi­nese Pre­mier Li Ke­qiang ad­dresses the open­ing cer­e­mony of the An­nual Meet­ing of the New Cham­pi­ons 2016, or Sum­mer Davos Fo­rum, in Tianjin, north China, June 27, 2016.—Xinhua fi­nan­cial risks and over­ca­pac­ity as big prob­lems. He vowed to keep push­ing for sup­ply-side struc­tural re­form with a fo­cus on re­duc­ing ca­pac­ity, de­stock­ing, delever­ag­ing, and re­duc­ing the costs of do­ing busi­ness. China is try­ing to wean it­self off over-reliance on nat­u­ral re­sources and turn to hu­man re­sources and innovation to keep the econ­omy grow­ing at a medium-high speed. The country will con­tinue to pro­mote mass en­trepreneur­ship and the “In­ter­net Plus” ini­tia­tive to fos­ter new growth en­gines. About 40,000 new mar­ket en­ti­ties have been set up ev­ery day lately, ac­cord­ing to Li.

The gov­ern­ment will also con­tinue to cut ex­cess ca­pac­ity in steel and coal sec­tors in “a mar­ket-ori­ented and law­ful” man­ner, he vowed. Ac­cord­ing to the pre­mier, gov­ern­ments and en­ter­prises will take mea­sures to reem­ploy steel work­ers and coal min­ers made re­dun­dant. “Over­ca­pac­ity is a global chal­lenge and China stands ready to be a re­spon­si­ble country with all th­ese proac­tive mea­sures,” he said.

The gov­ern­ment is re­form­ing its own ser­vices to cut red tape and reg­u­late emerg­ing sec­tors or busi­ness mod­els. Li also promised that China will make ad­just­ments in fis­cal, fi­nan­cial and in­vest­ment ar­eas to sup­port the real econ­omy, deepen re­forms in state-owned en­ter­prises and give pri­vate firms more ac­cess to the mar­ket.

Mean­while, Speak­ing to busi­ness lead­ers, pol­i­cy­mak­ers and aca­demics from more than 90 coun­tries, Chi­nese Pre­mier Li Ke­qiang said that China is com­mit­ted to main­tain­ing and de­vel­op­ing re­la­tions be­tween China and the Euro­pean Union (EU) as well as re­la­tions be­tween China and the United King­dom. Europe is an im­por­tant part­ner of China, and China ex­pects not only a sol­idary and sta­ble EU, but also a sta­ble and pros­per­ous UK, the pre­mier said while ad­dress­ing the An­nual Meet­ing of the New Cham­pi­ons 2016, also known as the Sum­mer Davos Fo­rum, in the north­ern port city Tianjin.

Li said that world eco­nomic re­cov­ery still falls short of ex­pec­ta­tions eight years af­ter the fi­nan­cial cri­sis. He said Brexit has had an ef­fect on global fi­nan­cial mar­kets, and the world econ­omy is fac­ing in­creas­ing un­cer­tainty. No country can talk about its own de­vel­op­ment with­out talk­ing about the world eco­nomic en­vi­ron­ment, the pre­mier said, stress­ing con­certed ef­forts to tackle chal­lenges. He pro­posed struc­tural re­form, in­dus­trial up­grades and ef­fi­cient global gov­er­nance as ways to drive the world eco­nomic re­cov­ery.—Xinhua

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