Assessing Premier Li's press conference
- By Jon Taylor
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E-mail Beijing Review, March 18, 2016
The Premier noted that inappropriate government control was hindering economic growth. He stated with confidence that while the non-performing loan ratio of Chinese banks had risen during 2015, China was "in a good position to defuse the risks." The Premier also remarked that the Chinese economy generated 13 million new urban jobs in 2015 and that the service sector expanded at 8.1 percent in first two months of 2016.
Of particular interest was the Premier's discussion of the importance of tax reform, the upgrading of traditional growth drivers, and an observation that urbanization is a major growth driver for China, both now and in the future. Premier Li noted, "There's a lot of room to boost both industrialization and urbanization."
The Premier stated that reforms can unleash revived growth and job creation, noting that "We will employ innovation to maintain steady economic performance. We must achieve win-win by striking a balance between cutting industrial capacity, spurring development and stable employment."
The Premier was asked how China's economic slowdown will affect the global economy. Premier Li noted that China is transitioning, that deep-seeded problems have become more acute and must be solved.
- China-U.S. relations
"China will stick to its path of peaceful development."
Premier Li noted that China was the United States' largest trading partner in 2015, which reached $560 billion. The Premier observed that "Bilateral common interests between China and the U.S. are bigger than disputes."
The quote that caught the attention of most American media outlets was the Premier's observation that "the result of the lively U.S. presidential election will not affect China-U.S. relations." The Premier touched upon China-U.S. BIT negotiations, noting that they should proceed on basis of mutual benefits.
An interesting question was posed to the Premier in which he was asked about American President Obama's focus on the Asia-Pacific region. Was this a problem for China? The Premier responded that this was not a problem and that China was willing to work with the U.S. He elaborated on this by noting that Asia was China's neighborhood and that China and the U.S. can cooperate with each other in the Asia-Pacific, contribute to regional stability, and develop a stable, benign environment in Asia with the cooperation of countries in the region.
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