Premier Li Keqiang has urged support of the real economy, focusing on the manufacturing and service sectors, as well as small and private businesses, by further reducing the taxes and fees they face. The premier also said that macroeconomic policies should be maintained, with timely adjustment to serve market entities and guide stable market expectations.
Li made the statements when presiding over a meeting last week on local and national economic developments in Nanjing, capital of Jiangsu province. Top government officials from seven provinces and autonomous regions reported on their local economic situations and proposed suggestions for national policymaking.
The premier said China has taken targeted and timely measures to tackle challenges arising from increasing uncertainties in domestic and international contexts to ensure stable economic development and accomplish targets set for this year.
However, downward economic pressure is getting stronger, as are regional imbalances, Li said. He called for full awareness of possible difficulties and conflicts and the firm deepening of reform and opening-up to keep economic operations stable and promote high-quality development.
China's GDP rose by 6.5 percent in the third quarter of the year compared with the same period last year, lower than the 6.8 percent in the first quarter and 6.7 percent in the second quarter, the National Bureau of Statistics said. The bureau also said on Friday that the official manufacturing Purchasing Managers' Index, an economic indicator showing industrial expansion, fell to 50 in November, 0.2 percentage points lower than October. A reading above 50 indicates expansion, while a reading below reflects contraction.
Li said domestic consumption should be appropriately expanded to unleash its potential, and effective investment should be boosted. Thresholds for private investors should be further lowered while major projects that aim to promote economic development and improve people's livelihood should be started as soon as possible, he said.
Government at all levels should make employment a priority, because it can increase wealth and spur social stability, Li said. He also urged government to think from the perspective of market entities and push forward with administrative streamlining while endeavoring to build a highly effective, stable and transparent business environment for fair competition, which he said is a key solution to overcoming challenges in economic development.
In addition, China should stimulate the vitality and creativity of its rich human resources, which is beneficial to maintaining stable economic development, the premier said.
At the end of the meeting, Li called on State Council departments to provide an environment conducive to local development and said local governments should adopt policies that are in line with local conditions. By doing so, the Chinese economy can be kept in a reasonable range, ensuring promising, long-term development, he added.
During his inspection tour to Jiangsu, Premier Li Keqiang called to fully implement supportive measures for private and small businesses, including ways to ease their burdens in getting financed, during an inspection tour in Jiangsu province that concluded on Friday.
On Thursday and Friday, Li visited several banks and companies in Nantong and Nanjing during his tour of Jiangsu, which had the second-largest GDP among provincial regions last year.
The premier started the tour at the Chongchuan branch of the Bank of Jiangsu in Nantong on Thursday. He asked the business owners about interest rates and how long it takes to open an account at the bank.
The bank's management reported to the premier that concerted efforts have been made to make more loans to small and micro-sized enterprises while reducing their costs. For seven consecutive years, the bank has maintained the biggest volume of loan balances for private and small businesses, with the largest number of such clients in the province.
Like many of his inspection tours, administrative streamlining was an interest for the premier in the Jiangsu trip.
At the "Smart Nanjing" center, run by the Nanjing Municipal Commission of Economy and Information Technology, Li spoke highly of the center using internet-based technologies to get government approvals done online, calling it a highlight for administrative streamlining.
The premier said the government service platform has promoted information sharing and stimulated market vitality and social creativity. He told local officials to make further efforts to improve the business environment.
Li Keqiang stressed transformation of traditional industries when visiting Luolai Lifestyle Technology Co in Nantong on Nov 29.
Committed to household textile businesses, the company has had the largest market share on similar products within China for consecutive 12 years.
