China takes practical approach to development over next five years
- Chinese Premier Li Keqiang cautions against ‘blindly launching’ new projects in favour of scientific assessment and reasonable growth
- Comments signal government has no intention of using ‘old tools’ of investment stimulus to meet latest challenges
China should take a practical approach in its 2021-2025 development plan, setting eyes on a reasonable growth rate and keeping some leeway, Premier Li Keqiang said on Thursday.
While the five-year plan should consider the post-coronavirus economic recovery over the next two years and the country’s 2035 development vision, the No 2 figure of the Chinese leadership called on the use of reformist measures to tackle structural problems in the world’s second largest economy.
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“Development targets must be scientific. They should be encouraging but also have some leeway,” Li told economic planners at a meeting in Beijing.
“We should do what we can and do our best in terms of industrial development, infrastructure construction and livelihood projects. Instead of blindly launching new projects, we must ensure all these planned ones can be accomplished.”
The comments come as Beijing turns inward to support its future growth amid Washington’s containment. In the dual circulation strategy introduced earlier this year, the authorities pledged to expand the domestic market and technologies.
They signalled the government’s intention to avoid investment stimulus, an old tool widely used after the 2008 global financial crisis to lift growth rates. Years of stimulus have led to a skyrocketing of China’s debt pile which poses a severe threat to its financial system.
