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Premier Li’s speeches at Davos

Updated: Sep 7,2015 8:18 PM     english.gov.cn

Premier Li Keqiang will attend the ninth Annual Meeting of the New Champions, or the “Summer Davos” forum to be held in Dalian, Liaoning province from Sept 9-11 and deliver a speech at the opening ceremony. This will be the fourth time Li has attended the forum since taking office. Following are the key points of his speeches at each Davos forum.

I

The Chinese Economy: Reform And Innovation For Sustained And Healthy Development

— At the World Economic Forum Annual Meeting Of the New Champions 2013

Growth with sufficient employment

The Chinese economy has entered a phase of medium- to high-rate growth. China’s growth in coming years should be predicated on higher quality and efficiency, bolstered by resource conservation and environmental protection and driven by technological innovation. It has to be a growth with sufficient employment and growing household income.

World economy remains complex

Five years have passed since the outbreak of the international financial crisis in September 2008 yet the world economy still faces a complex situation. Just as developed economies begin to show some signs of improvement, emerging economies are confronted with serious downward pressure. Affected by a multiple of factors, economic growth in China has slowed to some extent. In the face of the economic downturn, a short-term stimulus policy could be one way to drive up growth. But after weighing the pros and cons, we concluded that such an option would not help address underlying problems. Hence, we opted for keeping the macroeconomic policy stable, which we believe served both the immediate needs and long-term interests of the economy.

Administrative system changed

What this government has done first is to vigorously reform the administrative system with a focus on transforming government functions. Since the beginning of this year we have abolished or delegated the conduct of administrative review and approval for over 200 items.

China at a crucial stage

China is now at such a crucial stage that without structural transformation and upgrading, we will not be able to achieve sustained economic growth. In readjusting the most important aspect is to expand domestic demand, and a major task is to pursue a balanced development between urban and rural areas and among different regions. We will rely mainly on industrialization, a new type of urbanization, IT application and modernization of agriculture and focus on developing the service sector which is of strategic importance.

II

Creating New Dynamism Through Reform And Innovation

— At the World Economic Forum Annual Meeting Of the New Champions 2014

Economic growth rate within correct range

When observing the Chinese economy, one should not just focus on its short-term performance or the performance of a particular sector. Rather, one should look at the overall trend, the bigger picture and the total score. Judging by the principle of range-based macro-control, we believe the actual economic growth rate is within the proper range, even if it might be slightly higher or lower than the 7.5 percent target.

Employment on the rise

We should realize that an important goal of maintaining stable growth is to ensure employment, and the floor of the proper range is to ensure relatively adequate employment. Despite the economic slowdown, between January and August, the surveyed unemployment rate was kept at around 5 percent in 31 big and medium-sized cities. More than 9.7 million urban jobs were created, which is more than 100,000 greater compared with the same period last year.

Steady economic performance maintained

Facing this challenging environment, we have continued to follow the general principle of making progress while maintaining stability. We have stayed the course and pursued a proactive approach. Instead of adopting a strong economic stimulus or easing monetary policy, we have vigorously promoted reform and economic readjustment, and made efforts to improve people’s lives. As a result, we have maintained a steady economic performance. China’s effort to comprehensively deepen reform is an ongoing process. The government is taking the lead in conducting a “self-targeted revolution”. Just like an arrow shot, there will be no turning back.

III

Uphold Peace And Stability, Advance Structural Reform And Generate New Momentum For Development

— At the World Economic Forum Annual Meeting 2015

Adjustments are profound

The moderation in the speed of growth in China reflects both profound adjustments in the world economy as well as the law of economics. The Chinese economy is now the second largest in the world. With a larger base figure, a growth even at 7% will produce an annual increase of more than 800 billion US dollars at current prices, larger than 10% growth five years ago.

Financial crisis ruled out

Regional or systemic financial crisis will not happen in China, and the Chinese economy will not head for a hard landing. We are taking effective measures to fend off debt, financial and other potential risks.

We will deepen reform of the financial system, continue to promote liberalization of interest and exchange rates. We will provide easier market access for inbound foreign investment.

State of ‘new normal’

The Chinese economy has entered a state of new normal. The gear of growth is shifting from high speed to medium-to-high speed, and development needs to move from low-to-medium level to medium-to-high level. This has made it all the more necessary for us to press ahead with structural reform.

Strategic focus maintained

We will maintain our strategic focus and continue to pursue a proactive fiscal policy and prudent monetary policy. We will avoid adopting indiscriminate policies. Instead, we will put more emphasis on anticipatory adjustment and fine-tuning, do an even better job with targeted macro-regulation to keep the economy operating within the reasonable range, and raise the quality and performance of the economy.

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