China’s confidence is well-grounded, said Premier Li in his speech at Summer Davos, an event organized by the World Economic Forum in Dalian, northeast China. (Photo : REUTERS)
Despite the devaluation of the yuan, China’s economy remains a bright spot in the growth of the world’s economy, according to Premier Li Keqiang on Thursday.
Aside from the Chinese people's drive for innovation and entrepreneurship, Premier Li also considers stronger international cooperation as one of the factors that contribute to the economy's strong performance.
Because of these factors, China's confidence is well-grounded, said Premier Li in his speech at Summer Davos, an event organized by the World Economic Forum in Dalian, northeast China.
According to Li, it is not only the Chinese people who benefit from the economy's strong performance, but the whole world as well. For the first half of 2015 alone, China managed to contribute about 30 percent toward the world's economic growth.
"China is the source of global growth, rather than risks," Li said.
The country's growth rates in 2014 and in the first half of 2015, despite being impressive, are comparatively weaker than the double-digit growth China has seen in the past decades. However, Li said that a 7-percent growth is not to be taken lightly--it still remains among the highest in major economies.
Along with an impressive growth rate, Li also mentioned the central government's fiscal deficit (1.12 trillion yuan). Compared to other major world economies, China's fiscal deficit is low. This allows for great potential in China's financial markets.
"China still has a lot of tools to use in its innovative macro-economic adjustment policies and will continue to roll out targeted measures to counter downward pressure," Li said.
Other contributors to Chinese economy's continuing strong performance include increased consumption by Chinese consumers, the growth of the e-commerce industry in the country, as well as the travel bug that has bitten the Chinese populace.
