Chinese Premier Li Calls For “New Growth Engines” As Growth Falters

Chinese Premier Li Keqiang. Photo courtesy of Friends of Europe via Flickr.

Chinese Premier Li Keqiang has called for new economic growth dynamism and “new growth engines”, state-run Xinhua News Agency reported late Friday night, as the nation looks to find ways to combat faltering economic growth in the world’s second-largest economy.

Li’s comments came following an unexpected interest rate cut by China’s Central Bank, the People’s Bank of China (PBOC), which was the first rate cut in over two years in an effort to support economic growth.

Despite the economic headwinds this year, China has seen robust job creation, as such measures like streamlining administration in addition to delegating additional power to lower-level governments have spawned many new enterprises, Li said, according to the report.

China’s economy expanded 7.3% year-over- year in the third quarter of this year – which was the slowest pace of growth since the first quarter of 2009 – compared with 7.5% in the second quarter of 2014 and 7.4% in the first quarter of 2014.

According to Reuters, in a separate report, China’s economy is heading towards the slowest pace of economic growth in 24 years.

China should help people set up businesses and quicken the development of new business models, Li said.

Li encouraged Chinese manufacturers to expand globally and roll out more “Created-in-China” products and services.

Li also urged policy efforts to aid small and mid-sized banks in addition to bolstering the development of the Yangtze River economic belt that covers nine provinces.

Source: Xinhua, Reuters