2016年CRI Chinese Premier Expresses Confidence to Deal With Complicated Economic Situation

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Premier¹ Li has urged more communication and coordination² among G20 members to grapple with global economic headwinds.

"Macroeconomic policy coordination needs to be strengthened. The global economic and financial situation may have become more grim and complex. It is time for countries to stand together to tide over difficulties."

He said that major economies should not only be mindful of their own growth, but also watch for the spillover effects of their macroeconomic policies.

Improved global economic and financial governance is also important, which requires a better global monetary³ system and deepened cross-border taxation⁴ cooperation.

Speaking about financial reforms, Premier Li said China will continue to take measures to establish an open, transparent⁵, stable and healthy capital market.

"Based on market supply and demand, we will implement⁶ a floating exchange rate regime with effective management in reference to a Basket of Currencies. There's no basis for continued depreciation⁷ of the Renminbi exchange rate, and the Chinese currency will stay basically stable at a reasonable and equilibrium⁸ level."

Premier Li also highlighted the importance of supply-side structural⁹ reforms while expanding aggregate¹⁰ demand as appropriate.

"Quantitative¹¹ easing policies could hardly remove structural obstacles to growth and instead it may lead to more negative externalities. In this way, our focus should remain on structural reforms. Although different countries may carry out different policies, what is desirable is to support innovation, deregulation, and encourage more competition and greater openness, in a bid to boost the economy."

While facing a variety of risks and challenges, Premier Li pledged that China will further capitalize on its strengths: great economic potential as well as strong resilience and structural flexibility¹².

The G20 Finance Ministers and Central Bank Governors' Meeting in Shanghai wraps up on this Saturday.

Its chief task is to find common ground on how to reboot a struggling global economy in the face of renewed financial and political risks.

For CRI, I'm Xie Cheng.