China needs new trade route to future, Premier Li Keqiang says
Tried and tested low-value-added model is no longer enough for country to stay competitive
China can become more competitive and try to stave off an economic slowdown by selling more equipment, investing more offshore and exporting manufacturing capacity, Premier Li Keqiang said on Friday.
Addressing officials and top state-owned enterprise executives, Li said China needed to revamp the old external trade models that had served the country for the past 30 years.
"The old way is no longer sustainable," quoted Li as saying in reference to China's reliance on low-value-added processing. "We have to help our firms export Chinese equipment and forge international cooperation in manufacturing capacity so that the focus of China's external trade can shift from quantity to quality."
Li said China would be more selective in its imports, focusing on advanced technology, key equipment and important components. It would also promote exports of high-value-added products, technology and services, reported.
At the Friday meeting, which included executives of state-owned rail and nuclear power firms, the government said it planned to cut red tape and costs for Chinese firms looking to extend their reach overseas.
"This will help us withstand the downward economic pressure and push China's development into new spaces," a State Council statement quoted Li as saying.
