Published: Sun, March 17, 2019

Li: China eyeing rates, other policy steps to help economy

Li: China eyeing rates, other policy steps to help economy

China is targeting a GDP growth range of 6 to 6.5 per cent this year, down from 6.6 per cent in 2018 - the slowest pace in 28 years.

"This law will regulate government behaviour, requiring the government to perform its functions in accordance with the law", he said.

"China and the United States as two large economies have become closely entwined through years of growing their relationship and years of cooperation", Li said.

Last week Li laid out a lower growth target of 6.0-6.5 percent this year, from 6.6 percent growth in 2018, which was already the slowest pace for nearly three decades.

Li added he hopes that Sino-U.S. negotiations will "achieve results that yield mutual interests", hours after Chinese media reported senior trade officials of the two countries made "further substantial progress" during their telephone talks on Thursday.

Li said China has policy room reserved for dealing with possible uncertainties this year such as raising the deficit-to-GDP ratio, or using other instruments like required reserve ratios and interest rates. "This is not monetary easing but to more effectively support the real economy".

"China's economy will remain an important anchor of stability for the global economy", Li said.

It will prevent zero-employment families and provide more policy support to companies that hire more people.

Li's comments suggest Beijing will roll out more stimulus measures to ease the strain on businesses and consumers.

With speculation that Chinese President Xi Jinping and U.S. President Donald Trump may hold a summit in the near future to end a trade war, Li expressed readiness to make the nation's market more open and transparent to foreigners.

China's new foreign investment law, which was first tabled for reading last December, states in broad terms that foreign firms will receive the same treatment as local ones when it comes to government procurement, and that the authorities will not force technology transfer in exchange for access to China's markets.

China's No 2 leader on Friday denied Beijing tells its companies to spy overseas, refuting USA warnings that Chinese technology suppliers might be a security risk.

His comments came after increased worldwide scrutiny of Chinese telecommunications giant Huawei Technologies Co Ltd, which has been caught in the cross-fire as trade tensions ratcheted up. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

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