Li Keqiang "Positive Growth Possible This Year... 6th Plenary Session Mission Important" (Update)

[Image source=AP Yonhap News]

[Asia Economy Beijing=Special Correspondent Park Sun-mi] Chinese Premier Li Keqiang expressed confidence on the 28th, during a press conference following the closing of the National People's Congress (NPC), that China will implement tailored economic growth promotion policies this year and achieve positive growth.

Regarding the question about why China unusually did not set an economic growth target this year, Premier Li explained, "This COVID-19 has dealt an unprecedented shock to the global economy. Many international organizations are forecasting the global economic growth rate at -3%, or even lower. Not setting a GDP growth target this year is a 'pragmatic and realistic' approach."

He stated, "Although we did not set a growth rate target, we have identified six safeguarding tasks: employment of residents, basic livelihood, market entities, food and energy security, industrial chain stability, and grassroots organization operations. These six safeguarding tasks are directly related to economic growth. It is not that economic growth is unimportant, but we actually want the people to directly feel the benefits of economic growth. China’s economy can achieve positive growth this year."

Regarding the stimulus measures announced in this year's work report, he said, "In the past, we said we would not engage in 'Da Shui Man Guan' (大水漫灌, meaning large-scale flooding, referring to quantitative easing), and that remains true. However, special times require special policies," leaving room for flexibility. He added, "Without sufficient water, fish cannot survive. But if the water floods, bubbles form and fish cannot grow well. The measures we take must be 'tailored.'"

He explained, "The large-scale funds to be raised this time amount to about 2 trillion yuan, including 1 trillion yuan from the issuance of special COVID-19 bonds and an additional 1 trillion yuan from fiscal deficits," and added, "Along with this, policies to reduce corporate operating costs through various tax cuts will be implemented. Government budgets should be used to create jobs, support livelihoods, protect market entities, and sustain residents' incomes. China still has policy space to introduce new measures, so it is important to operate the economy steadily without hesitation."

This content was produced with the assistance of AI translation services.