Premier stresses need to prioritize range-based, targeted regulations

Premier Li Keqiang has ruled out the option of adopting strong stimulus policies to shore up economic growth this year, saying that the nation will maintain reasonably sufficient liquidity and take multipronged measures to lower financing costs for businesses, especially smaller firms.

Speaking on Thursday at a symposium that solicited opinions from experts and business leaders on the Government Work Report, Li pledged to maintain the consistency and stability of macroeconomic policies and make them more targeted and supportive of growth.

It is important to prioritize range-based and targeted regulation as well as ensure the effective implementation of a portfolio of large-scale tax cuts and fee reductions to ensure that policy benefits can be delivered to market players, he said.

Li underscored that China's economy is faced with fresh downside pressure, and is at a critical juncture in overcoming various obstacles.

Even though the nation's GDP grew 8.1 percent in 2021, the growth of the world's second-largest economy slowed to 4 percent in the fourth quarter, said the National Bureau of Statistics.

The Central Economic Work Conference in December, which laid out priorities for China's economic policies in 2022, highlighted headwinds including dwindling demand, supply shocks and weakening expectations while pledging to prioritize economic stability.

At the meeting, Li spoke with economists Yu Bin and Lin Zeyan and business leaders from China Energy Investment Corp, domestic services provider Ayilaile, and Boss Zhipin－an online recruitment platform.

The nation must continue to carry out its macro policies in an innovative manner, deepen reform and opening-up, further energize the market and maintain major economic indicators within a proper range, he said.

The premier highlighted the importance of supporting grassroots-level governments to maintain basic living standards of the public and basic operations.

To shore up support for the real economy, Li called for better use of credit tools, such as inclusive and small loans and relending tools that support farmers and smaller businesses.

He reiterated the need to adhere to an employment-first policy, including measures that beef up support to sectors hard hit by the pandemic and those creating large numbers of jobs.

The government will ensure the supply of electricity and coal and stabilize grain production, he added.

He stressed that the nation will continue to level the playing field for businesses of different ownership formats and accelerate steps to develop a business climate that is in line with market principles, the rule of law and international standards.

It is important to improve and strengthen market regulation, oppose monopolies and the disorderly expansion of capital and ensure fair competition, Li said.

The role of domestic demand in driving economic growth must be further amplified, and government investment must serve as leverage for more private investment, he said, adding that the nation will adopt multiple measures to lift household incomes and unleash spending potential.