New engines, stronger cooperation to ensure regional growth
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E-mail China.org.cn, March 31, 2016
Chinese Premier Li Keqiang recently identified China's reform and opening up drive, economic restructuring, and investment in people's livelihood as reliable growth engines, and called for closer financial cooperation among Asian countries.
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Chinese Premier Li Keqiang (6th R) poses for a group photo with foreign leaders attending the Boao Forum for Asia annual conference in Boao, south China's Hainan Province, March 24, 2016. |
Just like a high-speed train that is powered by multiple engines installed in individual carriages, China's economy needs stable operation and multiple driving forces, Li said during a keynote speech at the opening ceremony of the 2016 annual conference of the Boao Forum for Asia in China's Hainan Province on March 24
In terms of reform and opening up, China will step up financial market reforms and retool the economy to cultivate new engines, Li said. According to the premier, China will reform the capital market and draft rules for debt-to-equity swaps, a move that would help ease the nation's high debt levels. The Shenzhen-Hong Kong Stock Connect will be launched within the year, which allows investors to trade on both bourses.
Meanwhile, China will strive to cultivate new growth drivers while transforming and upgrading traditional ones, forming "twin engines" to promote development. Li also called for efforts to boost innovation and entrepreneurship and to develop the service and high-tech industries, small and medium-enterprises, and private businesses. Their development will support the transformation of traditional industries.
China will also work to "weave a safety net" that guarantees people's livelihood in the five areas of employment, education, medical care, old-age care and housing, said Li. Achievement in development should be manifested in the improvement of livelihood, which in turn fuels consumption and economic growth.
The premier reiterated China’s annual growth target of a minimum of 6.5 percent in the upcoming five years, reassuring the world of China’s flexibility in balancing reform and growth.
"The government will take measures if economic growth slips out of the reasonable range, as a loss of speed is the biggest risk for the nation," he said.
Financial cooperation among Asian economies
Premier Li also urged Asian economies to enhance economic and financial cooperation and to engage in dialogue to ward off potential risks and contribute to world economic recovery.
"Asian countries must have firm confidence and work together to overcome temporary difficulties," said Li. He proposed in particular to set up an Asian financial cooperation association to "improve markets and prevent financial turmoil."
"China is willing to cooperate with relevant parties to improve the Asian financial market buildup and jointly prevent another round of large-scale, regional financial turmoil from materializing," he said.
Asian countries have been a major contributor to the world’s economic growth for many years. But in recent years, the export-driven Asian economy faced problems such as rising debts, declining exports, currency depreciation and weak global recovery, casting shadows on the region’s economic stability and growth prospects.
However, the Chinese premier voiced his confidence in Asia’s economic outlook. The growth rate of Asian economies remain faster than the global average, and Asia is still the world’s most dynamic economy, contributing about 44 percent to world growth. Asia also accounts for one-third of the world's total trade.
Asia "is no longer what it used to be. Most (Asian) countries have accumulated rich experience in expanding the real economy and warding off financial risks," he said.
This year's meeting in Boao, which took place from March 22 to 25, was themed "Asia's New Future: New Dynamics and New Vision." More than 2,000 participants from over 60 countries and regions attended the forum. The event featured discussions on the macro-economy, politics, entrepreneurship, innovation, the Internet, public well-being and culture.
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