On Wednesday, Li Keqiang, the China’s Premier defended the economic policies of the country, stating numbers of opportunity compared to risk, and vowed that there would be no hard landing of China’s economy if the government presses after the reforms.
Ahead of the conference on Wednesday, Li mentioned that the world’s second-largest economy will cut red tape for businesses, work to decrease corporate debt, increase financial regulation and assure no mass layoffs will take effect as it will restructure heavy industries like coal and steel.
Li said, "We are confident that as long as we continue to reform and open up, Chinas economy will not suffer a hard landing,"
"Economic productivity is being held back by unnecessary government interference and we need to create a more level playing field and more oversight," he added.
Supply-side reforms of China are to unveil new sets of economic growth drivers, Li added.
In addition, he also mentioned that a raise in the central government funding can be implemented, which aims to support laid-off workers. In February, a 100 billion yuan fund was pumped and was shed at the relocation of workers who have lost their jobs as China goes to curb overcapacity.
However, he declined to provide specific numbers on how many staffs would be laid off, as well as on how staffs would either be relocated or retrained.
Analysts are expecting the country to lay off between 5 – 6 million state workers for the following two to three years as part of an initiative to curb industrial overcapacity, including pollution.
Ahead of the gradual demand across home and abroad, uncertain investment as well as the considerable industrial overcapacity, the growth of China’s economy posted about 6.9 percent last year, suggesting its sluggish pace in a quarter of a century.
Meanwhile, the expected growth of the government for the current year ranges at 6.5-7 percent. It is anticipated to endure for a year-long stimulus blitz to spur activity. A few Chinese analysts, on the other hand, are certain that the real growth levels are hitting below than the official suggested data.
Li Highlights Changes on Population Issues
Ahead of the meeting with the legislature last year, Premier Li Keqiang vowed to support couples who choose to have a second infant. In order to ease the struggling population on the country’s economy, the one-child policy continued at ease in October and Li’s comments then, come after.
Furthermore, the report delivered on March 5, does not contain the substantial phrase “family planning.” It appears that this is the very first time that a premier has omitted it, considering that the rules in family-planning took effective over the past three decades.
Thus, the official language that is usually used to bring about the one-child policy has changed, however, it has been cited often in reports. According to Li, the officials aim to improve population policies "while we stick to family planning as a basic national policy."
During his 2015 wore report, the phrase “family planning” was included, but he highlights more of the medical care quality improvement to families "to build a healthy China" compared to the policy alone.
Turning down the term from the report suggests a clear move at the top when coping with the population issues. It could as well play as an introduction to scrap laws on family-planning, which appears to be a significant factor as the country’s population ages and soon will lack young workers.
Another essential clue regarding a shift in the thoughts of policymakers is Li’s perspective to the vast population of China as large in number human resource. Thus, a powerful figure has said so. "We have 900 million people of working age and over 100 million of them have a college degree or are trained professionals who are our biggest resource and advantage," Li stated.
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