By Li Hongmei
Chinese Premier Li Keqiang said yesterday that the basis of China's economic recovery is still fragile but he promised to promote growth by opening markets to private competition and improving the investment climate for foreign companies.
China's economic fundamentals are stable but the global economy faces a "complex situation," Li said in his opening speech at the World Economic Forum in the northeastern city of Dalian.
"The foundation for an economic rebound is still fragile with many uncertainties ahead," Li told an audience of business leaders and politicians.
China's factory output and other activity improved in August after growth dipped to a two-decade low of 7.5 percent in the latest quarter. But analysts say the rebound is underpinned by government spending and might not last.
Li announced no new initiatives but affirmed the country's determination to focus on structural reforms aimed at making the economy more productive and efficient.
"China is now at such a crucial stage that without structural transformation and upgrading we will not be able to sustain economic growth," he said.
China is in the midst of an effort to nurture more self-sustaining growth based on domestic consumption rather than trade and investment.
"We are determined to further stimulate domestic demand and consumer spending," Li said.
The premier promised equal treatment for multinational companies. "China will continue to encourage foreign companies to invest and do business in China, and ensure that all companies have equal access and equal treatment," he said.
"Facts will continue to prove that to come and do business in China is a wise decision for multinationals."
Li was confident China would meet its goal of 7.5 percent economic growth this year. Such growth is still considered high for any major economy, although slower than the double-digit growth in the past, he said.
"As the economy enters a phase of transformation, the slowdown of its prospective growth and moderation of the Chinese economy from a high speed to a medium to high speed are only natural." Li said.
China's future growth must be bolstered by resource conservation and environment protection, and driven by technological innovation and advances. It has to be a growth with sufficient employment and growing household income, he said.
On concerns over local government debt, Li said relevant measures were being taken. An audit last year found local governments ran up debts of 10.7 trillion yuan (US$1.6 trillion) over the preceding decade.
"Here I can say with certainty," Li said, "that the situation is on the whole safe and manageable."
The World Economic Forum, known as the "Summer Davos," brings together around 1,600 political and economic leaders, experts and NGO representatives.
