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      Li vows steps to maintain growth

      2014-07-05 10:35 China Daily Web Editor: Yao Lan
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      Premier Li Keqiang visits the headquarters of Talkweb Information System Co Ltd, an animation company, in Changsha, Hunan province, on Friday. Liu Zhen / China News Service

      Premier Li Keqiang visits the headquarters of Talkweb Information System Co Ltd, an animation company, in Changsha, Hunan province, on Friday. Liu Zhen / China News Service

      Fine-tuning of measures, more reforms to help nation achieve 7.5% GDP target

      Market forces and more reforms, in addition to targeted policy fine-tuning, should be the measures used by policymakers to help the world's second-largest economy achieve its annual growth target, Premier Li Keqiang said during a visit to central China that ended on Friday.

      "China's economic growth is overall smooth and remains at a reasonable level," Li said at a meeting with leaders from four provinces and entrepreneurs on Thursday afternoon.

      He said higher employment numbers and the booming service sector, as well as the robust economic data in the second quarter, are all evidence that the government's pump-priming measures have borne fruit.

      China's GDP growth is estimated to have accelerated to 7.5 percent in the second quarter from 7.4 percent in the first three months, Switzerland-based financial services firm UBS AG said in a recent report, on the back of robust manufacturing activities and a more relaxed credit market. Official GDP figures are expected to be released on July 16.

      Li, however, said that there are still uncertainties in the global market and some structural problems in the domestic economy. "Therefore, we should not ignore downward pressure," he said.

      Local government officials, who were present at the meeting with the premier, expressed concerns about regional economic development.

      "The aluminum, coal and steel sectors are still suffering heavy losses. ... Lending rates, especially for smaller businesses, have grown by at least 20 percent on average," said Xie Fuzhan, governor of Henan province. He suggested that the central government further boost credit support to the real economy and let investment play a bigger role in driving growth.

      Su Shulin, governor of the coastal Fujian province, where footwear and textile exporters are struggling with weak foreign demand, called for greater supportive measures including faster export tax rebates to assist foreign trade growth.

      This is the second time within a month that the premier has had such a meeting with governors. In June, Li met top officials from eight provinces, including Beijing, Guangdong and Zhejiang, to discuss problems in the country's regional economic growth.

      "While maintaining steady economic growth, we should also continue to push forward structural adjustments to the economy, so as to benefit short-term and long-term development," Li said during Thursday's meeting.

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