Li Keqiang, Chinese Premier, Says "Achieving This Year's Economic Growth Target Is Possible"

Premier Li Keqiang of China
[Photo by Yonhap News]

[Asia Economy Reporter Park Byung-hee] Chinese Premier Li Keqiang expressed confidence that China’s economy can achieve its annual target.

Premier Li stated this during his speech at the opening ceremony of the China Import and Export Fair (Canton Fair) held on the 14th in Guangzhou, Guangdong Province, as reported by the People’s Daily and others on the 15th. He explained that China’s economy is vibrant this year and that major macroeconomic indicators are within reasonable ranges.

Goldman Sachs recently lowered its forecast for China’s economic growth rate from 8.2% to 7.8%, and other major global investment institutions have also reduced their expectations for China’s economy this year. This is due to concerns about a potential economic slowdown amid recent power shortages and the liquidity crisis of Evergrande Group, which has led to a slowdown in China’s real estate market.

However, since the Chinese government set a conservative economic growth target for this year, the possibility of achieving the government’s target remains high despite recent concerns about economic slowdown. In March, the Chinese government set this year’s economic growth target at “6% or above.” At that time, experts predicted that China had set a conservative target and could achieve an economic growth rate in the 8% range.

Premier Li also emphasized the continuation of the reform and opening-up policy. He said that the Chinese market will continue to be “fertile soil” for foreign investment and that “reform and opening-up is China’s fundamental policy and the basic driving force for China’s development.”

Li stated that the list of sectors prohibited for foreign investment will be further reduced and that intellectual property rights infringements will be strictly cracked down on. He also said China will actively promote the accession process to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and work with related countries for the early implementation of the Regional Comprehensive Economic Partnership (RCEP).

The CPTPP is a bloc launched on December 30, 2018, by 11 countries including Japan, Australia, and Mexico after the United States withdrew from the original Trans-Pacific Partnership (TPP) led by the U.S. in 2017. China had previously viewed the U.S.-led TPP as a means to isolate itself and was cautious, but on the 16th of last month, it suddenly applied for membership.

Additionally, Premier Li announced plans to establish an overseas smart logistics platform and create a digital trade pilot zone in the Greater Bay Area, which links Guangdong Province, Hong Kong, and Macau.

The Canton Fair is the oldest, largest, and most diverse trade fair in China. It began in 1957 and is held twice a year in spring and autumn in Guangzhou. This event was the first to be held offline since the outbreak of COVID-19. The offline exhibition period was from the 15th to the 19th and was shortened to one-third of the usual duration due to quarantine measures.