Premier Li Keqiang met reporters from home and abroad at a news conference on Wednesday at the end of the annual meeting of the National People’s Congress. Premier Li answered questions on various topics such as the economy, financial reforms and diplomacy. Here are highlights of the event.
China-US relations
The One-China policy constitutes the political foundation of China-US relations, which has remained unshaken despite the changing circumstances, cannot be undermined. “With that foundation in place, we believe that there are broad prospects for China-US cooperation.”
Diplomats from the two countries are already engaged in discussing a face-to-face meeting between the Chinese and US presidents.
US companies will be the first to suffer if the US and China have a trade war. Bilateral investment and trade had created nearly one million jobs for the US, and that the two nations should look and move forward despite challenges in the ties.
Financial risks
There will not be an eruption of systematic financial crisis in China and it has many policy tools available to resolve financial risks. “Once we find financial risks, we will tackle it promptly to prevent it from worsening.”
China’s GDP growth target for this year, which is “around 6.5 percent”, is not low given China’s already big economic scale and it would not be easy for China to achieve the target.
Economic growth
There is little risk of a hard landing for the Chinese economy because the country’s healthy economic transformation process relies mainly on industrial upgrades.
China has, for years, achieved medium to high growth, thanks to achievements made in consumption and industrial upgrades.
China will not adopt mass stimulus measures but will continue to fuel growth momentum through deepening reform.
Regional trade agreements
China always takes an open attitude to various regional trade agreements, and the country will seize any possible opportunity to improve the world economy through multilateral trading system.
But China will not overreach its regional influence to seek trade arrangements where the country’s due role is not in place.
Employment
The Chinese government will not allow massive unemployment, and China’s economy is projected to see steady growth without the likelihood of a hard landing.
“A close look at the Government Work Report will show that we have set higher targets in 2017 for all major areas of economic and social development, which includes creating 1 million more urban jobs than in 2016.”
For the past four years, China has been creating 13 million urban jobs a year, which has helped the country keep unemployment at a fairly low level.
Made in China 2025
Made in China 2025 is to enhance the quality of products, better meet consumers’ demands, and constitutes an important part of the supply-side structural reform.
But the plan will never lead to reducing imports and retreating from further opening-up.
Mass entrepreneurship and innovation
China’s 800 million-strong labour force, among whom 170 million received higher education and training in professional skills, is a tremendous source to generate enormous market opportunities for both China and the world.
Exchange rate
China has ample foreign exchange reserves to satisfy the demands of imports and short-term debt repayments.
China does not want to resort to yuan depreciation to boost exports as that would dampen the restructuring and upgrading of the corporate sector.
Laid-off workers
Helping laid-off workers find new jobs is the most important issue for China as it works to reduce industrial overcapacity.
Last year, the central government set up a 100 billion yuan ($14.4 billion) fund to help workers and also asked local governments to set up similar funds. Assistance has already been provided to 720,000 laid-off workers.
Asia-Pacific region
Premier Li hopes cooperation between China and the United States in the Asia-Pacific region will bring opportunities to ASEAN countries, instead of trouble.
China does not want to see any party in the Asia-Pacific region feel compelled to choose sides under the influence of a Cold-War mentality.