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China to focus on public products and services

(China News Online)    10:45, January 26, 2015

At this year's Davos forum, Chinese Premier Li Keqiang's speech eased other countries' concerns about a hard landing for the Chinese economy.

China's GDP growth in 2014 was 7.4 per cent, the National Bureau of Statistics reported. After this statistic was released, world media were filled with commentators expressing concerns.

Li talked about the uncertainties of the post crisis era during the annual World Economic Forum. Given the lack of clarity over global economic prospects, Li pointed out that countries should adapt open and innovative economic policies. Li gave particular emphasis to future global macro policies, saying that although it is important to set up macro policies, structural reform is essential. Structural reform will play a fundamental role in tackling international economic problems.

China is still confronted by many difficulties, including domestic debt and financial risks. However the country is confident that its 50 percent saving rate will help to tackle these problems and avoid any major regional financial crisis.

Li also introduced some new ideas in his speech.

Li said that the Chinese economy will achieve medium to high speed growth and that the Chinese economic structure has reached a medium to high level. Li also asserted the importance of the "twin engines" of the Chinese economy: the new engine in the shape of massive start-ups and innovations, and the traditional engine represented by government intervention in economic growth, focusing on expansion of supply of public products and service. Even though there is overcapacity in many industries, China still lacks investment in public products and services.

Li stated that China needs rapid action, balance, and courage to shift its focus from investment, exports and real estate to innovation and improvements in public services. It is vital for China to strike the right balance.

The article is edited and translated from 《李克强达沃斯演讲中的“双高”和“双引擎”》, source: Beijing News. author: Ma Guangyuan 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor:Yuan Can,Zhang Qian)

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