Chinese Premier Li Qiang meets the press after the closing of the first session of the 14th National People's Congress at the Great Hall of the People in Beijing on March 13, 2023. Vice premiers Ding Xuexiang, He Lifeng, Zhang Guoqing and Liu Guozhong attended the press conference. Photo: cnsphoto

 


Chinese Premier Li Qiang held his first press conference as China's premier on Monday morning, during which he addressed various key issues concerning the Chinese economy, vowing to further stabilize growth, prices and employment, while making new progress on high-quality development, supporting private businesses and continuing to open up China's market to the world.

Li's remarks, coming just two days after he was endorsed as Chinese Premier on Saturday, reflected his down-to-earth approach after working at various levels of local governments in economic powerhouses in eastern China, which inspires confidence among private businesses and the broader Chinese society about the country's economic and social development prospect, economists said. 

Challenges vs bright future

During the press conference which lasted about 82 minutes, Li, with a steadfast tone and great eloquence, addressed risks and challenges facing the Chinese economy head-on and projected confidence in its future prospects. 

On the government's GDP growth target of around 5 percent for 2023, Li said the target was set after taking into account all factors, but China's economic output has exceeded 120 trillion yuan, the base is very high and there is no shortage of new challenges this year. "To achieve the 2023 gross domestic product (GDP) growth target of around 5 percent on the current high base of China's economic output is no easy task and requires redoubled efforts ," Li said. 

The Premier said that the emphasis will be placed on ensuring stable growth, employment and prices, and the key to seeking progress lies in making new advancement in high-quality development. Specifically, China will make good use of a number of policy mixes in leveraging macro policies, expanding demand, advancing reform and innovation, and preventing and defusing risks, Li said, adding that the country will enrich, adjust and improve these policies in the course of implementation. 

Despite the challenges, China also enjoys a series of advantages in its economic and social development, including a vast market, a complete industrial system, abundant human resources, solid foundation for development, and most importantly, notable institutional strength, Li said, noting he is fully confident of China's economic prospect. "[China's economy] will break winds and waves and sail toward a bright future." 

The Premier's remarks, particularly his down-to-earth approach and his eloquence, boosted confidence in China's development. 

Notably, following the press conference, Chinese stocks closed higher on Monday, with the benchmark Shanghai Composite Index gaining 1.2 percent, even as stock markets in most of Asia Pacific were down due largely to the fallout of the collapse of two banks in the US. 

"In general, [the press conference] was down-to-earth with vernaculars that ordinary people can understand," Tian Yun, a Beijing-based economist, told the Global Times on Monday, noting that the most impressive thing was the focus on promoting the practice of research and studies among officials at all levels. 

As part of efforts to improve the conduct of the government, Li said that government officials at all levels will be encouraged to engage more with local communities to learn about what the people need and seek their opinions on the work of the government. 

"I have worked at the local level for a long time and I have a deep feeling: When sitting in the office, there are all problems; but when going into the grassroots, there are solutions. The bests are among the people," Li said. 

Throughout the press conference, the Premier also repeatedly referred to his experience working in local governments. When asked about China's opening-up policies and China-US relations, Li said he worked in Shanghai for the most part of last year, senior managers of multinational corporations he had talked to were all optimistic about the future of Shanghai and China, and they all believed that cooperation is the sure path to win-win outcomes.

Rebuking some in the US who have been hyping the idea of decoupling with China in recent years, Li said he wondered how many people can truly benefit from this kind of hype. "Encirclement and suppression are in no one's interests."

Chinese Premier Li Qiang meets the press after the closing of the first session of the 14th National People's Congress at the Great Hall of the People in Beijing, capital of China,on March 13, 2023. Photo: cnsphoto

Also reflecting his down-to-earth approach, the Premier also said he pays close attention on what netizens care about the most, saying he goes online whenever he has time to see what netizens focus on and what opinions and suggestions they have. 

Most people do not keep their eyes on GDP growth all the time. What they care more about are the things that happen in the everyday life like housing, employment, income, education, medical services and environment, Li said. 

Li stressed a people-centered development philosophy and vowed to make solid efforts on every piece of work concerning people's livelihoods. For instance, he said China will take a series of measures to stabilize employment, with a focus on supporting new college graduates to find jobs.

While recognizing the pressure on employment as well as concerns about the economic implications of China's demographic shift, Li also expressed confidence, saying a rich supply of human resources remains China's notable strength, as its demographic dividend has not disappeared and its talent dividend is in the making.

"Premier Li is full of confidence in China's economy. His remarks about China's economy sailing toward a bright future are very inspiring," Li Daxiao, chief economist at Shenzhen-based Yingda Securities, told the Global Times on Monday. "The focus on improving in the quality of the economy and living standards of the people also showed a very pragmatic attitude and a path full of hope." 

Supporting private firms

Another notable area where Li drew his past work experience is the government's support for the country's vast private firms. 

Asked about potential measures to boost the confidence of private firms, Li said he worked in places where the private sector is relatively stronger and had many opportunities to engage with private entrepreneurs and was aware of their expectations and concerns.  

"Indeed, for a period of time last year, there were some incorrect discussions in the society, which made some private entrepreneurs feel worried," the Premier said, stressing that China's commitment to the development of the private sector is unequivocal and steadfast.

"We will create a level playing field for all kinds of business entities and further support private enterprises in growing and thriving," Li said, while calling on private entrepreneurs to carry forward the entrepreneurial spirit and strengthen confidence.

Such remarks further underscored the general tone of the government's support for the private sector and offered private businesses a clear path forward, according to Pan Helin, co-director of the Research Center for Digital Economics and Financial Innovation at Zhejiang University.

"The emphasis on the development environment and space for private firms offers a general direction and path for the development of the private economy," Pan told the Global Times on Monday. 

At the press conference, Li said that the government will step up efforts to foster a business environment that is market-oriented, law-based and internationalized, treat companies of all types of ownership as equals, and protect the property rights of enterprises and the rights and interests of entrepreneurs in accordance with law.