LOOKING TO THE FUTURE WITH CONFIDENCE On March 15, met the domestic and international press at the Great Hall of the People in Beijing after the annual session of the National People’s Congress ended and answered questions on China’s economic prospects, r

China’s economic performance

As for the projected GDP growth target this year, which is set at about 6.5 percent, I have read some reports by the foreign media describing it as a move by the Chinese Government for a moderate downward adjustment of GDP growth. I should point out that 6.5-percent growth is not a low speed and would not be easy to meet.

I once watched a martial arts performance at the Shaolin Temple. A child monk could do over a dozen somersaults in one go easily. But for an adult monk, such consecutive somersaults would be an achievement because they’re different in size. So if we are able to achieve about 6.5-percent GDP growth in 2017, it will generate more economic output than last year, because this is a growth achieved on the basis of 74 trillion yuan ($11 trillion), a very large base figure.

This growth needs to generate at least 11 million new urban jobs. We believe this target is consistent with the laws of economics. Moreover, it can help us focus more on enhancing the quality and performance of China’s growth. I don’t think China’s contribution to global growth will come down. We believe that China’s economy will continue to be a strong driving force in the face of a sluggish global economic recovery.

With respect to risks, we are seeing growing uncertainties in the international economic and political landscape. These are the risks we need to address on the external front. As for China, lack of development would represent the biggest risk for the country. So it is essential that we maintain steady medium-high growth of our economy. That in itself is China’s contribution to global stability.

We also need to take very seriously the risks we’re facing on the domestic front, especially in the financial sector. We are fully aware of the potential risks, and we will take prompt and targeted measures to prevent them from spreading. I should point out that China’s financial system is generally stable and does not have systemic risks. We still have a good reserve of policy options and instruments at our disposal.

For example, our budget deficit to GDP ratio is below 3 percent, the capital adequacy ratio of commercial banks in China is 13 percent, and their provision coverage ratio is about 176 percent, all of which are above the international standards for financial security. As China’s growth is still medium-high speed, we need to fasten our seatbelts and prevent any acute outburst of financial risks. We will also make sure to prevent any regional and systemic risks.

Globalization and free trade

China has championed economic globalization and free trade. That has been China’s consistent position, although the trend of globalization has encountered some bumps along the road. This position has shown that China is committed to opening up. It is fair to say that all parties have benefited from globalization. Some issues and problems may have occurred in this process— for example, with respect to distribution—but we don’t think they are the result of globalization per se.

China is ready to work with other countries to further improve the international governance system in response to the problems that have occurred in the course of time. The global trend of peace, development, cooperation and globalization is indivisible. We believe that to take a closed-door policy or a beggar-thy-neighbor approach would not make anyone a winner in this process.

China itself has benefited from globalization and will remain committed to opening up. Last year, China was still the largest recipient of foreign direct investment among all the developing countries. The truth is, to shut our door to the outside world would not help China do its own things well.

China will continue to open to the outside world, with this opening up being a gradual process.

Also, in terms of the World Bank’s ease-ofdoing-business ranking, China in 2016 moved up 18 spots compared with where it was in 2013. Up to now we have launched 11 pilot free trade zones, starting from Shanghai, and the good experience gained from it will be introduced across the country. This year, we’re going to hold the Belt and Road Forum for International Cooperation, and more steps for opening up will be introduced.

For instance, we have been suggesting to other countries to work together to build free trade zones or negotiate and conclude investment and trade treaties. These will all contribute to two-way opening up.

As one opens up wider and at a higher level, frictions in trade and investment may increase, but their percentage will come down. We will continue to open up this country at a higher level and maintain this country as a popular destination for investment.

As for liberalization of global trade, we believe all countries need to work together to push it forward. This globe belongs to us all, and we all need to do our bit. We have always adopted an open-minded approach to various regional trading arrangements, and we would welcome progress in these arrangements or proposed arrangements. China will continue to engage in and participate in the liberalization of global trade. We believe it is essential to seize the opportunities of opening up in globalization. These are opportunities that no one should miss.

For regional trading arrangements that concern China, and where conditions are right, we would have an open-minded approach. We would be ready to work together with others to push these arrangements forward. But China