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Wednesday, March 15, 2017, 13:23

China won’t devalue yuan to boost export

By Xinhua

China won’t devalue yuan to boost export

BEIJING – Chinese Premier Li Keqiang said Wednesday that China would not devalue yuan to boost its export.

Li made the statement at a press conference after the conclusion of the national legislature's annual session.

If we meet the growth target this year, the size of expansion will be bigger than the growth last year

Li Keqiang, Premier, China

China will remain an important engine for world growth amid sluggish global economic recovery, Premier Li Keqiang told a press conference Wednesday after the close of the national legislature's annual session.

Given China's GDP has exceeded 74 trillion yuan (about US$11 trillion), the 6.5-percent growth this year does not mean the country's contribution will be coming down, according to Li.

A lower growth target will enable China to put more efforts in improving the quality and efficiency of economic performance, the premier said.

"I should say that the growth target of around 6.5-percent is not a low speed and it will not be easy to meet," he said.

"If we meet the growth target this year, the size of expansion will be bigger than the growth last year," Li said.


Li called for a "full stop" to hard-landing predictions on the Chinese economy, saying the country is capable of maintaining medium-high growth for a long time to come.

"China's economic performance in the past few years should suffice to put predictions of a hard landing to a full stop," Li said at a press conference following the conclusion of the annual legislative session.

Instead of resorting to massive stimulus, China has innovated macro-control approaches, upgraded industrial and consuming patterns and fostered new growth sources to keep the economic running in a proper range, Li said.

More importantly, China has created over 50 million urban new jobs in the past four years, Li noted.

For the long run, China's economy will continue to enjoy medium-high growth and be upgraded to higher levels, he added.

Li also admitted the challenges and difficulties in deepening reforms, vowing to further streamline government administration to curb "arbitrary use" of power.


He also expressed confidence in the country's financial stability, ruling out the possibility of systemic risks as "the country has plenty of policy options at its disposal."

"China's financial system is generally safe," the premier said.

China's budget deficit to GDP ratio stands below 3 percent, the capital adequacy ratio of commercial banks is 13 percent and their provision coverage ratio is at 176 percent, all above the international standards for financial security, he cited a set of data to support his view.

READ MORE: Li calls on entrepreneurs and innovators to drive growth

Acknowledging potential risks in the financial sector, Li said the government will take them seriously and adopt prompt and targeted measures to prevent them from spreading.

China will "fasten the seat belt" and prevent any "acute outburst" of financial risks on the track for maintaining medium-high growth speed, Li said.

The Chinese Premier said it is China's consistent position to support globalization and free trade.

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