Chinese PM rejects idea that 2021 GDP growth target too 'low'

Chinese Prime Minister Li Keqiang on Thursday defended the government’s target for more than 6% economic growth this year, saying it is “not low”, and policies would not be dramatically loosened to chase higher growth.

The target was well below analysts' expectations, as their consensus forecast is for growth of more than 8% this year.

Li said the focus this year is on consolidating China’s economic recovery, and setting hugely different growth targets from year to year would only “disturb” market expectations.

“Walking quickly for a moment does not mean one is walking steadily,” Li said. “It is only with a steady pace that we will be firm in our steps.”

Li warned against any “sharp turn” in policymaking, saying that there would be no drop in efforts to secure people’s livelihoods.

“We did not ease policies last year, nor do so-called quantitative easing, and there is also no need for a ‘sharp turn’ this year,” Li said during a news conference after the close of the annual meeting of parliament.

On the government’s 2021 target to create more than 11 million urban jobs, Li said, he hoped that goal could be exceeded even though pressure on employment remains significant.

“In generating jobs, we have to let the market play a critical role, which is protecting jobs by supporting market entities,” he said.

Financing channels to small and medium-sized enterprises should be kept open even as banks remain vigilant over debt risks.

“We will guide financial institutions to reasonably give up profits while stabilising leverage ratios, to make it easier for firms to raise capital amid declining financing costs,” Li said.

China will also continue to open up to outside investment, including a push to open up its services sector, he said.

“We will deepen our opening up while boosting domestic demand through all efforts, and make China an important destination for foreign investment,” he said.

With 260 million elderly people, China’s “ageing industry” in particular can be a huge “sunrise industry” for foreign companies, Li said.

'China has common interests with US'

He said that China and the United States have common interests and many areas for cooperation and should strive for healthy development in relations.

Li said Beijing hoped ties could develop in a healthy way based on respecting each other’s core interests, win-win cooperation and non-interference in internal affairs.

It is inevitable the two will have differences, but what is key is how they deal with those, he added.

“The people of China and the United States are wise and capable, and the two sides have to conduct dialogue and communication with respect and equality,” Li said.

“China and the United States share broad common interests and there are many areas where we can cooperate. We should still focus more on common ground and expand our common interests.”

US President Joe Biden’s administration has committed to reviewing elements of US policy toward China, as the world’s two largest economies navigate frosty relations that sank to their lowest depths in decades during Donald Trump’s presidency.

President Biden and his Chinese counterpart, Xi Jinping, held their first phone call as leaders last month and appeared at odds on most issues, even as Xi warned that confrontation would be a “disaster” for both nations.

US Secretary of State Antony Blinken will meet with top Chinese officials on March 18 in Alaska, the first high-level in-person contact between the two sparring countries under the Biden administration.

Biden wants to signal a break with Trump’s “America First” approach by re-engaging with allies and focusing on multilateral diplomacy, while also recognising the world has changed since he served in the Obama administration that preceded Trump.

'China will continue to work with WHO to seek Covid-19 origins'

The Chinese premier also said that the country would continue to work with the World Health Organisation (WHO) in trying to find the origins of Covid-19, in response to a question on US criticism that it was not transparent in sharing data on early cases with a WHO investigation earlier this year.

Li further said that China had “acted in a fact-based manner and with an open, transparent and cooperative approach”.