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State Council meeting sparks positive global reaction

Updated: Sep 2,2015 5:21 PM

Premier Li Keqiang presided over the State Council meeting on Aug 28, and its decisions generated widespread and positive global media coverage.

The National Broadcasting Company (NBC) in the United States said that the Premier’s words at the meeting showed that although China is facing downward pressure, the economy is still growing steadily.

AFP said that the Premier believes that China is still the world’s growth engine and he has shown confidence in overcoming current difficulties despite recent fluctuations on the international financial markets.

The Strait Times of Singapore said that the Premier has great faith in the economy and delivered positive signals to investors, a view echoed by the Economic Times of India who said that the economy is growing, the currency has no reason to undergo further depreciation and the Premier has rebuilt confidence among investors.

Reuters noted that special meetings of the State Council were held from time to time but this one meant that the Cabinet understood the international financial fluctuations and will take positive measures to address it.

The meeting showed the Chinese government will take measures to stabilize the financial markets, said The Wall Street Journal.

Hong Kong-based Wen Wei Po stated that the State Council made it clear that it was capable of maintaining the RMB exchange rate and the stock market within a reasonable range.

The Frankfurter Allgemeine Zeitung of Germany said the economic downturn in China is not a major problem as the economy is still undergoing structural transformation from investment to consumer-driven growth.

The Washington Post said that although China is facing downward pressure, its service industries and consumption are growing at a steady pace and China’s long-term development is promising.

The Chinese stock market does not reflect the real economy, CNN said, which is developing moderately and Time magazine predicted that China will not encounter major problems as the government has funds and policy measures to stabilize the market.

UBS, the Swiss financial giant, said that apart from a slowdown in the manufacturing sector, there are no indicators of major concern about and a 7 percent economic growth is sufficient to meet employment needs.

Singapore-based OCBC Bank said that the government’s measures had made investors believe that they are capable of maintaining the RMB exchange rate and Capital Economics, an independent macroeconomic research institution, said that China’s economic data were far more positive than the news reports implied.

Mizuho Securities Co. said that reform in China is gradually showing results and it will help to solve the downturn in traditional industries and the economy will probably see a recovery in the second half, it said.