Premier Li Keqiang’s speech at the 2015 Summer Davos attracted attention and triggered wide discussion.
In the first half of the year, China’s capital market appeared vulnerable to fluctuations, Chen Fengying, director of the World Economy Institute at the China Institute of Contemporary International Relations, told Economic Daily.
She added that with the adjustment of the renminbi exchange rate, people began to become confused about the Chinese economy.
The Premier explained some misunderstandings toward the Chinese economy by listing specific numbers and measures, and showed the world that China will continue to be open for foreign investment, she added.
Chen also mentioned global production capacity cooperation - China produces mid-range products, which are the best choice for newly emerged markets and developing countries. She also said that global production capacity cooperation is an important power driving the growth of world economy.
“We should make a specific policy for the renminbi if we want to make it the international currency, “ said Li Daokui, director of Tsinghua University’s Center for China in the World Economy.
He said it is important to maintain a stable exchange rate as the adjustment has limited effect on the Chinese economy, and this was what the Premier tried to convey in his speech.
Li Daokui listed other policy measures which have the same effect - the financial industry needs to be more innovative and introduces more products which are good for the real economy.
“Premier Li mentioned the concept of a sharing economy. From my point of view, it has two core meanings, “ said Li Zuojun, a senior researcher at the Development Research Center of the State Council.
On one hand, economic development results should be shared and allocated equally; on the other economic development should be participated by all, Li Zuojun explained. From his point of view, this can help to increase the income of low-income groups, thus expand consumption and drive economy growth. Also, this can lower the cost of entrepreneurship and encourage more people join the innovation group.
“The process of economic globalization is accelerating, different economic entities have competitive and cooperative relations,” said Li Zuojun.
In the past five years, China’s investment has made up more than 50 percent of its neighboring countries’ foreign investment, said Ding Yifan, an economist at the State Council’s Development Research Center. China’s investment in other countries greatly stimulates their economic growth, which is also the contribution China made for world economy, he added.
With Chinese labor and land increasing prices, some cross-country companies moved to southeast Asian countries. Yet more foreign capital is seeking opportunities in China, especially in the service industry, Ding said. China’s reform is to create a better environment for foreign investors, as China will still be one of world’s most attractive markets for a long time, he added.