Chinese Premier Li Keqiang reiterated that China is still expecting economic growth around 7.5% in 2014 during a speech to businessmen and politicians in Hamburg, Germany today, Bloomberg reports.
The “quality” of economic expansion is just as important as its speed amid concerns on if China is going to be able to reach its growth target this year, Premier Li said.
China could exceed or miss its growth target, however the nation doesn’t “face a hard landing as some say,” Li said.
“Stamina and perseverance” are just as important as speed in the economic policy mix, which underlies why the Chinese government has avoided further economic stimulus measures including using monetary policy to help meet the nation’s growth target, he said.
Li’s comments mirror those of Ma Jun, the chief economist at China’s Central Bank, the People’s Bank of China (PBOC), who also said on Saturday during the IMF and World Bank meetings in Washington that China faces a “very low” risk of a hard landing and that he doesn’t see any reason for large-scale fiscal or monetary stimulus “in the foreseeable future.”
Li said that similar to that of Europe, China is at a “critical” phase of development as there are complex challenges that weigh on the nation’s ability to reach economic growth targets.
China is looking to Europe for cooperation in food security, environmental technology, fighting terrorism and crime, and combating diseases like the current Ebola outbreak, Li said.
“In the difficult situation we’re seeing in the global economy, it’s a sign of stability that German-Chinese economic cooperation is developing nicely,” German Chancellor Angela Merkel said yesterday.
The two nations agreed on a 28-page pledge to boost mutual investment, cooperate on innovation, and increase competitiveness, even as both nations are competing for export markets.
Sources: Bloomberg
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