Chinese Premier Li Keqiang said Tuesday that China was fully capable of delivering the year’s major growth targets, thanks to steady economic transition.
The Chinese economy has become more stable and sustainable, and has made progress in restructuring and improving efficiency, Li said when addressing the opening of the Annual Meeting of the New Champions 2017, or Summer Davos, in Dalian.
The government set the GDP growth target at around 6.5 percent for the full year, while pledging to pursue better results in actual economic work. In addition, China will keep its consumer price increase at around 3 percent and the registered urban unemployment rate within 4.5 percent.
The world’s second largest economy posted a forecast-beating growth rate in the first quarter, with GDP up 6.9 percent year on year, the quickest increase in 18 months.
A number of financial institutions, including the International Monetary Fund, have upgraded their forecast on China as new impetus is accumulating and the economic re-balance is making headway.
Li attributed the stellar performance to the country’s ongoing economic restructuring.
China neither took strong stimulus measures nor followed the old investment-driven and resources-reliant path, but strived to innovate and reform in its drive toward an economic shift to consumption and services, Li said.
Consumption contributed 64.6 percent of GDP in 2016, while the tertiary sector accounted for 51.6 percent of the economic growth.
“Domestic demand has become a significant pillar [for the economy],” Li said.
Li believes a rumbling China engine will generate more opportunities for the rest of the world. The country imported 1.6 trillion U.S. dollars of goods last year, while outbound trips amounted to 130 million.
While voicing confidence, the premier did not shy away from challenges.
“Short-term and small fluctuations of economic indicators are unavoidable but the long-term steady trend will not change,” Li said, ruling out the possibility of a hard landing.
China will continue to propel its supply-side structural reform, streamline administration, delegate power to lower levels, grant easier market access, push forward entrepreneurship and innovation, downsize saturated sectors, and stimulate consumption, according to Li.
From Tuesday to Thursday, around 1,500 politicians, officials,entrepreneurs, scholars and media representatives from over 90 countries and regions will assemble in Dalian to discuss topics from inclusive growth to the new industrial revolution.
Established by the World Economic Forum in 2007, the summer forum is held each year in China, alternating between the port cities of Dalian and Tianjin.