Four things China’s Premier Li Keqiang just told the World Economic Forum

Premier Li Keqiang also tells the World Economic Forum in Dalian there will be no hard landing for the world’s second-largest economy

PUBLISHED : Tuesday, 27 June, 2017, 1:14pm
UPDATED : Tuesday, 27 June, 2017, 3:35pm

China would like foreign businesses to keep their profits in the country and reinvest them, Premier Li Keqiang said in his keynote speech at the World Economic Forum in Dalian on Tuesday, although he added there would be no restrictions on the movement of their money.

“I also promise you, for all foreign business profits generated in China, you can move [the funds] freely in and out of China, and there won’t be any limitations,” said Li.

Li also made the following remarks in the speech:

Economy

China’s economic growth is gaining fresh momentum and there will be no hard landing in the world’s second-biggest economy. The unemployment rate in May dropped to 4.91 per cent, he noted, the lowest level in many years.

Market access

China will continue to open its markets in the services and manufacturing sectors. It will loosen restrictions on shareholdings by foreign companies in joint ventures and will ensure China will continue to be the most attractive investment destination.

Economic policy

The Chinese government will not rely on stimulus to bolster economic growth. Instead, it will use structural adjustment and innovation to maintain economic vitality. The government will keep stable macro policies – a prudent monetary policy and a proactive fiscal policy – to ensure clarity and stability in financial markets.

Financial risks

China is fully capable of containing financial market risks and avoiding systemic ones. There are rising geopolitical risks and increasing voices opposing globalisation. China will keep its promises in combating climate change and will work to promote globalisation.