China’s economy has performed well under the backdrop of a softening global economy and it will continue the sound momentum for the long run, Chinese Premier Li Keqiang said at a press conference on Friday morning.
When asked if China will take more measures to tackle the downward pressure on its economy, Li said that China will take strong measures to boost the market, instead of a large stimulus.
It is true that China’s economy has encountered new downward pressure but it is not alone, Li said, noting that several major global organizations have adjusted their forecasts for global growth this year.
Under such circumstances, China adjusted its GDP target for 2019 and set it at a target range, which is compatible with the growth rate set last year and in a reasonable range, sending a message of stability to the market, he said.
Against a larger backdrop of rising protectionism last year, China achieved GDP of 90 trillion yuan, which will be a very large base for 2019’s growth target, he noted.
China countered downward pressure several years ago. Compared with the possible options of quantitative easing monetary supply, and expanding budget deficit, which work in the short term, but lead to problems in the long run, China chose to boost vitality in the market, Li said.
China will streamline administration, cut taxes and fees, foster new drivers of growth and ensure a level playing field for all market players, and free up space for companies. These measures are a bid to generate tremendous creativity and keep major economic indicators in a proper range and achieve high-quality development, Li said.
China has prepared for volatility this year with policies, he said, noting the government has increased its deficit budget by 0.2 percentage points, which are still lower than the global warning line of three percent.
Li emphasized that China will not resort to monetary easing but will try to offer support to the real economy.
In all conditions, “China will stand at the reality and keep its economy stable with sound momentum for the long run,” Li said, noting China’s economy will remain a key anchor in the world economy.