China becoming a consumption powerhouse: Premier
China becoming a consumption powerhouse: Premier
Premier Li Qiang says China's economy continues to post steady growth.
Premier Li Qiang said on Wednesday China is striving to develop itself into a super-sized consumption powerhouse as he expressed optimism towards the world's second-largest economy.
The premier also warned that global trade tensions were intensifying in a keynote speech at the opening plenary of the 16th Annual Meeting of the New Champions, also known as the Summer Davos, in Tianjin.
Li said China would strive to become a "major consumption powerhouse" on the solid foundation of a manufacturing powerhouse.
"We are also stepping up our efforts to implement the strategy of expanding domestic demand... promoting China's growth into a major consumption powerhouse," he said, stressing that China is moving towards becoming a high-income country.
He added that Beijing is confident in, and capable of, maintaining rapid economic growth.
"China's economy continues to grow steadily, providing strong support for the accelerated recovery of the global economy."
The central government has set a GDP growth target of about 5 percent for 2025.
Li also said Beijing will continue to foster a first-class business environment that is market-oriented, law-based and internationalised, and always keep the doors wide open and warmly welcome businesses from all countries to invest and deepen their roots in China.
On the world economy, the premier said it was undergoing profound changes, and Beijing is willing to do whatever it takes to help tackle difficulties and challenges it faces.
"Protectionist measures are significantly increasing and global economic and trade frictions are intensifying," Li said.
"The global economy is deeply integrated and no country can grow or prosper alone.
"In times when the global economy faces difficulties, what we need is not the law of the jungle where the weak fall prey to the strong, but cooperation and mutual success for a win-win outcome."
The premier called on the international community to take constructive actions to boost international economic and trade cooperation.
"Constructive actions mean we need to proactively take more practical measures to safeguard free trade and multilateralism and promote the stable development of the world economy."
Li said disputes and differences should be resolved through equal consultations.
More than 1,700 leading figures from over 90 countries and regions are attending the summit in Tianjin from Tuesday to Thursday.
The theme this year is "Entrepreneurship for a New Era," exploring how entrepreneurship and emerging technologies can unlock more dynamic and resilient economies. (Xinhua and agencies)
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He said China would 'share indigenous technologies and innovative scenarios with countries around the world.' Clearly, Li is referring to Washington's efforts to deprive China of advanced semiconductors and other high-tech equipment on national security grounds. Yet, as recent data reminds, China's real battle is with domestic consumers who save more than they spend. There's not a moment to waste. For years, economists from East to West knew that China needed to prod consumers to save less and spend more. Unless Xi can truly pivot to a consumption-driven model, it will delay the moment when China surpasses the US in gross domestic product (GDP) terms. Or, even miss its chance to be the world's No 1 economy. Chinese households are serious savers. 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For example, means-tested transfers to households would boost aggregate demand 50% more than an equivalent amount of public investment. To ensure consistency across policies, fiscal policy should be undertaken within a medium-term fiscal framework.' Trouble is, the world's second-largest economy is still struggling with weak consumer sentiment and deflation. Whatever life there is in consumer activity, it tends to be driven by government-subsidized home goods trade-in programs, not organic economic optimism. Clearly, China has a 'mega-sized' opportunity to reorder the global economy – especially as Trump walls off the US economy in the name of making America great again. It just needs to act on increasing the role of domestic consumption, and not just talk about it. Follow William Pesek on X at @WilliamPesek
