China’s Economy to Maintain Medium-High Rate of Growth: Premier

Time:2017-09-13   Source:National Business Daily Reported by Feng..

Chinese Premier Li Keqiang and heads of six international economic and financial organizations attended the “1+6” Roundtable themed “Promoting an Open, Invigorated and Inclusive World Economy” on the morning of September 12, 2017. Their discussions revolved around “global economic situations and future of economic globalization” and “promoting transformation and upgrading of China’s economy”.

Li Keqiang said that China’s economy has registered stable performance with good momentum for growth. He also put forward five-point suggestions on world economic development, including following and improving international rules through negotiations, increasing efforts in advancing structural reform, making the world economy more inclusive, and pushing forward financial regulation reform.

Bullish about China’s economic growth

Heads of international economic and financial organizations present at the Roundtable included Jim Yong Kim, President of the World Bank, Christine Lagarde, Managing Director of the International Monetary Fund (IMF), Roberto Azevêdo, Director-General of the World Trade Organization (WTO), Guy Ryder, Director-General of the International Labor Organization (ILO), Angel Gurria, Secretary-General of the Organization for Economic Cooperation and Development (OECD), and Mark Carney, Chairman of the Financial Stability Board (FSB).

In the first half of 2017, China registered a better-than-expected GDP growth rate of 6.9%. Profits of industrial enterprises increased over 20%, the job market improved, and prices remained stable. China’s remarkable economic performance has made great contributions to global economic growth. After the “1+6” Roundtable, Premier Li Keqiang told the press that the good momentum will continue in the second half of 2017, confident that China’s economy will maintain a medium-high rate of growth and China’s industries will move toward the medium-high end.

Despite the impacts of seasonable factors and weather, China’s manufacturing Purchasing Managers Index (PMI) registered at 51.7% in August, up 0.3 percentage point from the previous month, reflecting the stable performance of the manufacturing industry overall.

The China SME Confidence Index (SMEI) launched by Standard Chartered picked up from 56.0 in July to 57.4 in August. As new orders index outpaced finished goods inventory, momentum index sped up from 5.2 in July to 6.8 in August. The SMEs performance index, expectation index and credit index also saw better results.

“The stronger willingness of SMEs to expand has driven the investment index to a new high of 57.0 in the past five months; financing status and expectation index have improved, and the same is true of employment, suggesting that investment is growing”, said Shi Shenlan, analyst at Standard Chartered Greater China.

Many international financial organizations have already upgraded their forecasts for China’s economic growth. In June, the OECD raised China’s growth rate from 6.5% to 6.6% for 2017, and from 6.3% to 6.4% for 2018. In July, the updated World Economic Outlook of the IMF adjusted upward its projections to 6.7% for 2017 and 6.4% for 2018 by 0.1 percentage point and 0.2 percentage point respectively. This is the third time the IMF has upgraded China’s growth forecasts since the beginning of 2017.

Li Keqiang pointed out that China will remain committed to the underlying principle of making progress while keeping performance stable, maintain the stability and continuity of macro policies, improve macro-regulation and control, and keep market expectations stable.

Unanimous acclaim for China’s achievements

China’s economic growth and economic transformation and upgrading have given a boost to the world economy. China is among the fast-growing economies in the world, and contributed to more than 30% of global economic growth, said Li Keqiang.

The participants present applauded China’s productive efforts in promoting growth, adjusting structure and guarding against risks and its progress in economic transformation and upgrading. They highlighted that China has further invigorated the market by encouraging innovation and entrepreneurship among the general public, and kept improving the business environment. They acknowledged that China has valued and supported multilateralism and free trade and its economic performance has given strong support to the recovery and growth of the world economy, and pledged to support China’s efforts in pushing forward structural reform, deepening reform and opening up and improving growth quality and sustainability. They also spoke highly of China’s steadfast commitment to maintaining multilateral trade systems, and expected to discuss material topics and common concerns on a regular basis.

Li Keqiang pointed out that despite the recovery, the world economy is still vulnerable to various instabilities and uncertainties.

He brought forward five proposals on the world economic development. First, countries around the world should adapt to the general trends of multilateralism and globalization, abide by and improve international rules through negotiations, and strengthen macro-economic policy communication and coordination in order for common prosperity. Second, efforts should be increased to push forward structural reforms, promote institutional innovation, reduce institutional trading costs, unleash the vitality of entrepreneurship and innovation, develop emerging industries, improve productivity, and protect intellectual property rights. Third, maintain the multilateral trade systems based on free trade. All countries should capitalize on their comparative advantages to share the fruits of development. They should open wider to others rather than close doors to address trade imbalances and thus achieve a win-win situation. Fourth, make the world economic growth more inclusive and equitable. China is willing to align the Belt and Road Initiative with the 2030 Agenda for Sustainable Development of the United States and development strategies of other countries. Fifth, push forward financial regulation reform, focus on developing the real economy and preventing financial risks, strengthen macro prudential management, and guard against systematic risks.

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