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Country will open wider to world, Li says

By XU WEI | CHINA DAILY | Updated: 2021-03-12 06:57
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Premier Li Keqiang answers questions from reporters at a news conference after the closing of the annual national legislative session in Beijing on Thursday. [FENG YONGBIN/CHINA DAILY]

"By setting our GDP growth at above 6 percent, we have left possibilities open, which means in actual delivery, there may be even faster growth," he said.

Li said the country is keenly aware of the large uncertainty around the economic rebound in China as well as global economic recovery, adding that the modest target, which is well below the expectations of some economists and financial institutions, may be better aligned with the possibilities and conditions for what the nation can accomplish next year and the year after next.

"We must avert wild swings in economic performance because that will unmoor market expectations. Growth that is too fast would not be steady, and you need steady growth to sustain development for the long run," he said.

The premier underscored that there is no need for China to suddenly shift in macro policies this year, as the country ruled out the option of quantitative easing even under difficult circumstances last year.

With the economy on the track of recovery, Li highlighted the need for appropriate policy adjustments while continuing to extend support to market entities, especially smaller businesses, which are still reeling from the fallout of the downturn from COVID-19.

To offset the impacts of scaling back in periodical support policies, Li pledged structural cuts in taxes and fees to ensure unrelenting measures to meet people's basic living needs, promote employment and support market entities.

China has set a budget deficit target of around 3.2 percent of GDP, down from 3.6 percent last year, with 2.8 trillion yuan ($431.7 billion) of central government funding-compared with 2 trillion yuan last year-allocated directly to county- and prefecture-level governments for the purpose of supporting tax and fee cuts.

As the nation endeavors to stabilize its leverage ratio from the surge last year, Li also highlighted the need to encourage financial institutions to make reasonable interest concessions to make financing easier for smaller companies and lower their financing costs.

Zhou Lanxu contributed to this story.

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