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Economy shows 'optimistic changes': Li

By ZHAO YINAN in Shenyang (China Daily USA) Updated: 2014-03-28 07:35

Premier Li Keqiang reiterated his determination to keep China's economy running within a "reasonable range" despite signs of a slowdown in the first quarter, showing a firm stance on refraining from any stimulus policies in the country.

He said the Chinese economy has shown some "optimistic changes", but "we have to pay close attention to problems occurring during economic development and we cannot ignore signs of a possible slowdown".

"We have to persist in not issuing bailout packages while taking initiatives to change the situation," he told government officials from Liaoning, Zhejiang, Anhui, Guangdong and Chongqing provinces at an economic symposium in Liaoning on Wednesday.

At the gathering, governors from the five provinces presented their first-quarter economic development results and offered suggestions on how to improve economic operations. Such symposiums are usually held at the end of every quarter, when the premier and local governors sit down to discuss pressing issues.

China International Capital Corporation predicted in its quarterly report that China's economic growth is expected to slow to 7.3 percent in 2014 due to multiple downward trending factors.

China's economy, which began to soften at the end of last year, showed more signs of a slowdown Monday. The latest evidence was found in the HSBC's preliminary manufacturing purchasing managers' index (PMI), which dipped to an eight-month low of 48.1 from a final reading of 48.5 in February.

Contrary to expectations of a mild rebound as activity normalized after seasonal distortions, China's growth momentum continued to slow following the Lunar New Year, as manufacturing contracted for the third month in a row in March.

Li expressed his confidence in resisting such downward pressure as he mentioned the "successful experience" that the government had last year in reversing an economic downturn.

The government sticks to rebalancing the economy while maintaining growth, employment and inflation within a reasonable range, in a bid to achieve sustainable and healthy development.

It is an ideal that the economy is heading towards its expected limits, and reform remains "the key important part," Li said.

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