Chinese Premier: Downward Economic Pressures Will Not Lead to Hard Landing
Fon Mathuros, Head of Media, World Economic Forum, Tel.: +41 79 201 0211, Email: fmathuro@weforum.org
· China has made significant progress in transforming its economy through structural reforms, said Premier Li
· Innovation is becoming the major driver of the Chinese economy and needs to be encouraged in individuals
· The Annual Meeting of the New Champions 2016 is taking place in Tianjin, People’s Republic of China, from 26 to 28 June
· Follow the Annual Meeting of the New Champions 2016 (#amnc16) at http://wef.ch/amnc16
Tianjin, People’s Republic of China, 27 June 2016 – Persistent downward pressures will not prevent the Chinese economy from meeting its medium-high growth target, Chinese Premier Li Keqiang assured science, technology, business, government and civil society leaders in the opening plenary of the World Economic Forum’s 10th Annual Meeting of the New Champions. While the global economic recovery since the crisis eight years ago has been weak and market volatility and uncertainty have risen, China will maintain stable and sustainable economic growth by pursuing structural reforms and promoting innovation and new drivers of development, Li pledged.
“In the face of mounting downward economic pressure, we did not resort to indiscriminate measures,” the premier said in his address, noting that the economy grew by 6.7% – within the government’s target range – in the first quarter of this year. Li observed that the number of new enterprises is growing faster than in the past two years, that the rise in domestic consumption is compensating for the downturn in exports, and that services are now the largest sector of the economy. “The Chinese economy will not head for a hard landing and we are capable of meeting our targets for this year. The prospects are bright.”
The World Economic Forum’s 10th Annual Meeting of the New Champions is taking place on 26-28 June in Tianjin, People’s Republic of China. Convening under the theme, The Fourth Industrial Revolution and Its Transformational Impact, more than 2,000 business leaders, policy-makers and science and technology experts from over 90 countries are participating in more than 200 sessions over the three days of the meeting.
Li acknowledged China’s key economic challenges, including the need to address the global problem of overcapacity, make governance more efficient and continue to pursue structural reforms, including the renewal of state-owned enterprises and upgrading of traditional industries. He stressed the importance of helping those who have been laid off to find new jobs. Government debt levels are not so high and still “give us space for carrying out fiscal policy,” he remarked. “The difficulties and downward pressures are still mounting. But the fact that we have faced up to and admitted to these difficulties shows that we have the determination to prevail over them.” Concluded Li: “Optimism is a sign of confidence.”
In response to a question, Li underscored the government’s determination to keep the economy on track: “We are taking the hard steps to overcome those long-entrenched problems in China’s development. It is fair to say that, if we can keep China’s economy growing at its proper range, this is the best we can hope from this economy.”
In the face of sweeping changes driven by the technologies of the Fourth Industrial Revolution, China is focused on stimulating innovation across the economy and society, Li asserted. “Innovation will be the force driving us forward and bringing out the potential of everyone. That is why we are promoting mass innovation. Even an intellectually challenged person can demonstrate genius-like talent. We must have faith in the capacity of each individual.”
In his introduction of Premier Li, Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, outlined the challenges posed by the Fourth Industrial Revolution. Because the advances in technology are happening so rapidly, “we need to develop regulatory principles and agile frameworks to ensure the best and coordinated use of technology so that all global citizens can thrive in this new era.” He added: “All of these efforts must be based not only on innovation, but also on coordination, green development, opening up and sharing.”
Earlier, in welcoming remarks, Huang Xingguo, Acting Party Secretary of the CPC Tianjin Municipal Committee and Mayor of Tianjin, also referred to the “momentum and sweeping impact” of the Fourth Industrial Revolution, which he said “will completely change the traditional way of life and production and reshape the economic landscape of the future.” He described Tianjin, which is hosting the Annual Meeting of the New Champions for the fifth time, as “the cradle of China’s modern industry – a city that is playing the role of a new champion with vitality.”
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