China has experience, policies in managing economic slowdown, says Premier

Allaying global fears over China’s continued slowdown, Premier Li Keqiang has said the country has experience in dealing with various risks and has sufficient policies to manage the deceleration of world’s second largest economy as the growth slipped below 7%.

“We will continue to implement a proactive fiscal policy and prudent monetary policy, as well as an innovation-driven development strategy,” Li told the World Bank President Jim Yong Kim on Thursday.

China is willing to enhance macro policy coordination with the international society via the G-20 group, he said.

For the first time in 25 years, China’s economy grew at its slowest pace at 6.9% in 2015, sparking global concerns over the health of the world’s second largest economy as the Communist giant embarked on painful economic reforms.

The growth rate, moderated to 6.8% for the fourth quarter, the lowest quarterly rate since the global financial crisis in 2009, and 6.9% for 2015. The 6.9% growth rate is the slowest in the country since the 3.8% in 1990, a year after the bloody Tiananmen Square crackdown rocked the country and isolated it internationally.

Li has been playing down the impact of the slowdown saying that Chinese government targeted an annual economic growth of around 7% by implementing various structural reforms to revitalise the economy which included cutting down excessive manufacturing and ramping up domestic consumption.

In his meeting with Kim, Li praised cooperation between China and the World Bank in such areas as urbanisation and reform of pharmaceuticals and the healthcare system. He called on the two sides to strengthen research on new growth momentum, to help China to maintain medium-high growth and achieve a medium-to-high level of development.

Kim said all major economies should improve macro policy coordination against the backdrop of a weak global economy.

China has maintained relatively fast economic growth by changing and through structural reform, state-run Xinhua news agency said.

The World Bank will strengthen policy communication with China and conduct an in-depth discussion with China on issues concerning the G-20 summit and the development issues that China is interested in, Kim said.

The World Bank is willing to deliver more rational and objective opinions about Chinese economy to international society, he added.

Kim is visiting China for the G-20 Finance Ministers and Central Bank Governors meeting slated for February 26-27 in Shanghai.