The future of China's economy is bright thanks to a solid base and strong impetus, said Premier Li Keqiang at the opening ceremony of the Summer Davos meeting in Dalian, northeast China, on Thursday.
Li said it was not blind optimism because China had the advantages of huge potential and inner tenacity. Major programs to promote new industrialization, information technology, urbanization and agricultural modernization are now in progress, which will contain domestic demand. China's variety of industries guaranteed an economy characterized by resistance and self-recovery, Li said.
Structural reforms, to realize sustainable economic expansion, have been successful, the premier said. As the largest developing country in the world, China will continue to roll out measures to maintain medium-high growth with higher efficiency and quality.
Li highlighted the reform of the financial sector, stressing the importance of market and laws in fostering a fair, transparent and stable capital market as well as improving risk controls. China has the support of high savings and large foreign exchange reserves, and reforms will improve the usage of such resources to support the real economy.
Besides cutting interest rates and reserve requirement ratios, China has scrapped the interest rate ceiling for both loans and deposits, and will allow more private capital to enter the sector as well as boost private banks, financing assurance and financial leasing, the premier said.
He also mentioned the recent changes to the yuan's central parity system, stressing that the move had nothing to do with boosting exports, and the country is unwilling to see a currency war, as it will be harmful to China.
The inter-bank foreign exchange market will be opened to foreign central banks, and a cross-border RMB payment system will be established by the end of 2015 to improve the yuan offshore market, Li said.
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