China economic activity can return to reasonable range in 2021: Premier Li Keqiang

By: |
November 24, 2020 9:12 PM

Beijing will allow consumption to play a "guiding role," while investment will play an "effective role," he added.

The decision is also in sync with the recent collaborative effort of Japan, India and Australia to forge and expand a supply chain partnership, a move seen as countering the dominance of China in global trade.The decision is also in sync with the recent collaborative effort of Japan, India and Australia to forge and expand a supply chain partnership, a move seen as countering the dominance of China in global trade.

China’s premier Li Keqiang said on Tuesday he expects economic activity in the country can return to a reasonable range next year, after the impact of the coronavirus pandemic on GDP growth in 2020.

“China’s economy this year can achieve positive growth, and we expect next year (economic) operations can recover to a reasonable range,” Li told a news conference with leaders of six major international economic and financial organisations, including the World Bank and International Monetary Fund.

China’s economy, the world’s second-largest, grew 0.7% in the first nine months of 2020 from a year earlier, while third-quarter GDP was up 4.9% year-on-year.
“We will continue to expand opening up, and we will absolutely not pursue a trade surplus,” Li added, insisting China would put equal emphasis on imports and exports and wanted to achieve a balance of trade.

Beijing will allow consumption to play a “guiding role,” while investment will play an “effective role,” he added.

China this year unveiled a “dual circulation” strategy to cut its dependence on overseas markets and technology in its long-term development, a shift brought on by a deepening rift with the United States.

The country has said it will rely mainly on “internal circulation” — the domestic cycle of production, distribution, and consumption — for its development, supported by innovation and upgrades in the economy.

In a statement released by China’s foreign ministry before the so-called “1+6” news conference, Li said China would maintain a continuous and stable macroeconomic policy, adopt more reform measures and promote the return of economic activity to a reasonable range.

In his round-table meeting with the six institutions, which also include the World Trade Organization (WTO) and Organisation for Economic Cooperation and Development (OECD), Li said China would continue implementing active fiscal policy and a steady monetary policy, according to the statement.

Do you know What is Positive GDP growth seen in Q3, need to fight inflation: RB, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1World Economic Forum’s online Davos summit to begin Sunday; Modi, Jinping among listed speakers over six days
2CM Nitish Kumar must bridge political-economic divide in Bihar with more balanced choices on policy fronts
3Kerala passes resolution against CAG’s audit report