Li Keqiang: The Chinese government has the ability to maintain rapid economic growth

Abstract On the afternoon of the 9th, Premier Li Keqiang held a dialogue and exchanges with representatives of Chinese and foreign entrepreneurs attending the 9th Summer Davos Forum at the Dalian International Conference Center to express their views on the future development of the Chinese economy and foreign investment. Innovation is the future of the Chinese economy...
On the afternoon of the 9th, Premier Li Keqiang held a dialogue and exchanges with representatives of Chinese and foreign entrepreneurs attending the 9th Summer Davos Forum at the Dalian International Conference Center to express their views on issues related to the future development of the Chinese economy and foreign investment.

Innovation is the new kinetic energy of the future development of China's economy
It has been seven years since the outbreak of the international financial crisis, and the world economy is still weak. The Chinese economy is indeed under downward pressure. I believe that China's economic situation can be said to be "fluctuating, and the trend is still good." This is because China’s economy grew by 7% in the first half of this year and is among the top economies in the world.

I have said that as long as there is more adequate employment, the income of residents growing in sync with GDP and the environment of continuous improvement, this rate of development is acceptable to us. On the other hand, in the first half of this year, the urban survey unemployment rate was around 5.1%, and the number of new urban employment was over 7 million. This also proves that China's economic operation is in a reasonable range.

It can be said that the new kinetic energy of economic growth is the mass entrepreneurship and innovation that we are striving to promote. By promoting reforms such as the commercial system and “double innovation”, since last year, we have added more than 10,000 market entities per day on average, and the economic structure is undergoing a good change. For example, the contribution rate of consumption to economic growth has reached 60%, the proportion of service industry in GDP has increased to 50%, and the growth rate of high-tech industry has exceeded 10%. These new changes are what we strive to promote and are happy to see.

At present, China's economic operation can be said to be slow and stable. On the one hand, it is stable and good, but on the other hand, it is difficult to stabilize. Because we are working hard to promote structural adjustment through structural reforms. In this process, due to the development of kinetic energy conversion, it is inevitable that some economic indicators will fluctuate between monthly and quarterly. Not only this year, but also last year and the year before, but the Chinese economy is still in a reasonable range. We will adhere to the basic orientation of macroeconomic policies and continue to work hard to promote reform and opening up and promote structural adjustment. Of course, we will also strengthen the range control, directional regulation, camera regulation, keep the economy running smoothly in a reasonable interval, and create conditions for structural reform and structural adjustment.

We will not dance with the short-term fluctuations of some economic indicators, but we will not take it lightly, but we will adjust the fine-tuning in a timely and appropriate manner and increase the intensity of targeted regulation. We are confident that the Chinese people have wisdom and the Chinese government has the ability to maintain rapid economic growth and move towards the mid- to high-end level.

Further promote foreign direct investment
The overall policy of using foreign investment in China will not change, but the specific policies are indeed changing, and it is changing in the direction of attracting more foreign investment and opening wider areas. For example, this year we continue to expand the field of foreign investment, and the restricted category has been cancelled by 50%. In order to promote the facilitation of foreign investment, we have basically changed the approval system to a filing system, and probably only less than 5% of the projects that need to be approved now. At the same time, we are exploring the management model of pre-entry national treatment plus negative list, advancing the review of China-US and China-Europe investment agreements, and conducting FTA negotiations with many countries. It can be said that the entry of foreign capital into China will be broader and the method will be more convenient. Our ability to attract foreign investment is actually increasing. In the case of poor global investment this year, China’s foreign investment in the first half of the year has also increased by 7.7%.

We are implementing an innovation-driven strategy to promote mass entrepreneurship and innovation. This in itself requires the protection of intellectual property rights. It is necessary to create a fair and competitive business environment. We will treat foreign-invested companies and Chinese companies in China equally, whether they are joint ventures or wholly-owned. But don't misunderstand, not to say that the intellectual property rights of companies that are not registered in China can be violated. That is not allowed by Chinese law, nor is it allowed by world axioms.

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