Chinese Vice Premier confident in China's economy

Delegates attend the session of "Automobile Recall" during the Boao Forum for Asia Annual Conference 2017 in Boao, south China's Hainan Province, March 24, 2017.[Photo: Xinhua]

Vice Premier Zhang Gaoli on Friday expressed his confidence in China's economy when meeting with global entrepreneurs during the ongoing Boao Forum for Asia (BFA), reassuring them that China would guarantee easier entry for foreign investment.

China's sound economic fundamentals remain unchanged, Zhang told business people from the world's industrial giants at a symposium on the sidelines of the BFA annual conference held in the southern island province of Hainan.

"The Chinese economy has long-term prosperity and achieved development miracles," Zhang said.

Despite downward pressures, the world's second largest economy expanded 6.7 percent year on year in 2016, contributing to more than 30 percent of global economic growth.

"Job increases surpassed expectations, economic restructuring accelerated and people's livelihood continued to improve," Zhang said, noting the economy is stabilizing.

The Chinese economy has seen a good start in 2017 as significant improvements have been made in major indicators, including trade and factory activity. Analysts expect the economy to maintain this momentum during the remainder of the year to realize the official annual growth target of 6.5 percent.

A BFA report on Asian emerging economies predicts China will grow by 6.5 percent to 6.7 percent year on year in 2017.

"China appeared excellent in terms of overall economic strength, with the highest score among 37 Asian economies," said Wang Jun, researcher with the China Center for International Economic Exchanges.

"The Chinese economy is resilient, and has great potential," Zhang said, adding that growth would be backed by sufficient human resources, an enormous market, a strong real economy, technological improvements and complete infrastructure.

"There have been increasing bright spots in the economy," Zhang said, citing new growth momentum, new technology and new business models. "China has seen robust outbound and inbound investment, and ongoing urbanization will create room for further development."

Zhang said that in face of cumulative structural problems, China would push forward supply-side structural reform to realize economic transformation, and improve quality and general competitiveness, pledging more efforts to cut excess capacity, reduce inventories, bring down leverage, relieve corporate burdens and fix weak links.

China will downsize the steel and coal sectors by 50 million tonnes and 150 million tonnes in 2017, respectively, according to Zhang.

Kent Calder, director of the Edwin O. Reischauer Center for East Asian Studies, Johns Hopkins University, praised China's efforts, saying that he was positive about the supply-side structural reform.

Thanks to the reform and opening up, China maintained an average annual GDP growth of 9.9 percent from 1978 to 2010. In the 12th Five-Year Plan period (2011-2015), the pace slowed to 7.8 percent, still an enviable growth rate throughout the world.

Executives from companies, including Tata Sons, Mitsui Fudosan and Qualcomm, attended the symposium. Zhang reassured them that China would deepen its opening up and further ease access for foreign investment.

Zhang said the country would vigorously create a fair environment for investors, and that foreign and domestic players would be treated equally. He said he expected that China would remain one of the top destinations for foreign investment.

Zhang encouraged foreign investors to participate in China's major regional strategies and invest more in manufacturing, ecological and environmental management, and under-developed areas.

Globalization highlighted

Economic globalization was also highlighted by the vice premier in the meeting, which is expected to be a hot topic during the forum, as many parts of the world, including Asia, are suffering from setbacks in globalization.

"We will firmly push forward economic globalization, promote the liberalization and facilitation of trade and investment, and oppose all forms of trade protectionism," he said.

He said China would promote economic globalization through reform and innovation, and grasp the opportunities offered by the digital economy to promote structural reform and enhance global economic cooperation.

"Globalization must not be reversed," said Zhou Wenzhong, BFA's secretary general.

Under the theme "Globalization and Free Trade: The Asian Perspectives," the four-day conference runs until March 26 and is expected to rally support for inclusive globalization.

"The forum will focus on how developed and developing economies should cope with globalization," Zhou said.