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Li vows steps to maintain growth

By Zhao Yinan in Changsha Wei Tian in Shanghai (China Daily) Updated: 2014-07-05 06:40

"The aluminum, coal and steel sectors are still suffering heavy losses. ... Lending rates, especially for smaller businesses, have grown by at least 20 percent on average," said Xie Fuzhan, governor of Henan province. He suggested that the central government further boost credit support to the real economy and let investment play a bigger role in driving growth.

Su Shulin, governor of the coastal Fujian province, where footwear and textile exporters are struggling with weak foreign demand, called for greater supportive measures including faster export tax rebates to assist foreign trade growth.

This is the second time within a month that the premier has had such a meeting with governors. In June, Li met top officials from eight provinces, including Beijing, Guangdong and Zhejiang, to discuss problems in the country's regional economic growth.

"While maintaining steady economic growth, we should also continue to push forward structural adjustments to the economy, so as to benefit short-term and long-term development," Li said during Thursday's meeting.

The premier called for more private sector participation in urban renovation and railway projects in central and western regions, as well as energy and environmental protection projects. He also urged the private sector to introduce more healthcare and pension service products.

Li said the government would focus on targeted policy fine-tuning, including tax reduction and monetary support to the agricultural and service sectors, to ensure that the 7.5 percent annual economic growth target can be achieved.

"The government is still confident and has enough ammunition to boost the economy," said Fan Gang, a noted Chinese economist, during a recent forum held by Singapore-based OCBC Bank.

"The Ministry of Finance was actually behind their fiscal spending schedule in the first half, yet the economy is already growing at nearly 7.5 percent. With a better global economic climate expected in the second half, there will be an uptick in growth," he said.

Li vows steps to maintain growth

Li vows steps to maintain growth

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