Chinese Premier Li Keqiang reassured international investors and business leaders on Wednesday as to the robust state of China’s economy at the Summer Davos Forum on Wednesday.
“The economy is stabilizing despite a slower pace of growth,” said Li during the opening ceremony in Dalian, Liaoning Province. “Generally, the economy faces more opportunities than challenges, although there are still difficulties.”
Li stressed that China is speeding up economic structural reforms, explaining that the service industry is currently contributing to half of total GDP, while domestic consumption accounts for 60 percent of economic growth.
High-tech industries have performed better overall; domestic demand had witnessed vigorous growth in the fields of information, culture, health and travel, while energy conservation, environmental protection and green economy sectors have experienced rapid growth.
In response to questions about concerns of an impending “hard landing,” Li said, “the Chinese economy will not suffer a ‘hard landing,’ and this is not just empty words.”
Li said although the Chinese economy has experienced downward pressure in recent years, China refrained from issuing excess currency or large-scale stimulation plans. Instead, the nation enhanced economic vitality through reforms, which not only stabilized the economy as a whole, but also lay solid ground for future adjustments. Besides, China’s fiscal deficit is relatively lower in comparison to other major world economies. (The Daily Mail – People’s Daily news exchange item)