Premier Li Confident China’s Economy Stable; Will Withstand Trade War
(Photo: REUTERS/Thomas Peter/Pool)
In a recent speech, Chinese Premier Li Keqiang said that the country will not devaluate its currency in order to make it look enticing to foreign investors and businesses. He added that China has the capabilities to cope up to any incoming economic threats. He is also confident that the country can sustain a stable and reasonable exchange rate for the renminbi, China's official currency.
Premier Li highlighted some of China's coping strategy in order to mitigate the effects of the trade war the country is currently embroiled in. In a somewhat rare occurrence, Premier Li admitted that China's economic growth is showing signs of slowing down. Nevertheless, he confidently told his audience that the country is stable enough to withstand it as the government starts to draw up regulations and measures to keep the economy high.
On Tuesday, Premier Li attended that third "1+6" roundtable dialogue held in Beijing. The main discussion point revolves around several topics, most notable of these are a multilateral trading system, global economic trends, China's booming consumer market, and the government's reform and plan to open it up to the rest of the world.
The "1+6" dialogue was attended by some of the most prominent figures in terms of the global financial and economic sector. Among those present are World Bank Group President Jim Yong Kim, International Monetary Fund Managing Director Christine Lagarde, World Trade Organization Director-General Roberto Azevedo, Organization for Economic Cooperation and Development Secretary General Angel Gurria, Financial Stability Board Chairman Mark Carney, and International Labor Organization Deputy Director General Deborah Greenfield.
As the United States continues to embrace a more isolationist strategy, Premier Li had called for globalization. The Chinese Premier added that the pressure that pushes the global economy downward is still strong. He urged everybody to work together in order to maintain market stability and promote mutual respect. He also reiterated his opposition to unilateralism and protectionism.
In terms of domestic changes, Premier Li assured everybody in the audience that China is well-equipped with policy and regulatory policies that will overcome any trade difficulty. Additionally, he also promised that China will develop and implement a more proactive style of fiscal policy.
For small and medium enterprises, the Premier said that new monetary policies will help these enterprises find funding. Lastly, he promised that a possibility of a tax cut on a much larger scale is now being considered by top government officials. Should this take effect, he is confident that it will help drive consumer power.