Li Keqiang stresses China need for structural reforms
Beijing not looking for short-term benefits as more data points to further economic recovery
Premier Li Keqiang stressed the mainland's need to stabilise economic growth and push forward with structural reforms when meeting multinational business leaders in Dalian yesterday before the World Economic Forum, which opens today.
Recent economic data, including industrial output and power usage, showed a recovering trend, Li said. "The most prominent problem or pressure comes from the need to ensure adequate employment. The government will adopt active policies to boost jobs, and such policies must be carried out under the condition of stable economic growth."
Li said the government would not rely on macroeconomic adjustments such as increasing the fiscal deficit and loosening money supply when faced with downward pressure on the economy because they "may achieve some impact in the short term but not necessarily help development in the future".
He said Beijing was, instead, determined to release market dynamics through reforms.
Industrial production growth hit a 17-month high last month, driven by an acceleration in fixed-asset investment, consolidating a rebound in economic activity and showing that Beijing's mini-stimulus has paid off.
Encouraging production, investment and exports data has increased the odds that economists will be more upbeat when they revise their growth forecasts, although some still have doubts.