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Li to boost global confidence in China's restructuring economy

(Xinhua) Updated: 2015-01-20 14:16

BEIJING - As Chinese Premier Li Keqiang leaves for Davos on Tuesday, the National Bureau of Statistics (NBS) announced that the world's second largest economy grew 7.4 percent in 2014.

Although the pace was the slowest in 24 years, it was in line with mainstream market expectations against the general backdrop of China's painstaking efforts in economic restructuring.

"The economy is maintaining steady operation under the new normal, with positive trends of stable growth, optimized structure, enhanced quality and improved social welfare," noted Ma Jiantang, head of the NBS at a press conference.

On the global landscape, which is fraught with uncertainties in the developed world and fluctuations in international markets, the Chinese economy still represents a bright spot and functions as a ballast for the world economy.

At the Annual Meeting of the World Economic Forum (WEF), Li will join the movers and shakers of the world for their annual brainstorming and deliver a clear message of confidence in the Chinese economy.

When he takes the floor at a plenary session on Wednesday, all eyes will be fixed on the clues he may provide on the health of the increasingly hefty Chinese economy as the global recovery remains fragile.

Confronted with rising threat of terrorism in Europe, heightened geopolitical tension in Ukraine and a possible replay of the euro crisis, the global economy is facing strong headwind despite lower oil prices.

The World Bank cut its projections for the global economy last week, forecasting that China will see its growth rate further down from 7.4 percent in 2014 to 7.1 percent this year, the lowest in more than two decades.

The projection, echoed by the International Monetary Fund (IMF) on Tuesday, has triggered a re-emergence of "China collapse" warnings. But as have been repeatedly proven, such theories will not hold.

"The premier is expected to reiterate confidence in the Chinese economy despite the slowdown, which remains in a reasonable range and is a natural result of deepened reforms," a source close to the central government said. "There are downward risks, but China has enough policy room and there is no need to be pessimistic."

"He will also give a detailed assessment of the new reform measures implemented in the drive for China's economic transformation, rebuffing those gloomy views about the Chinese economy," the source added.

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