Growth target will be met: China’s Premier Li Keqiang as he vows cuts in taxes and red tape
Premier rejects suggestion economy will expand at less than 6.5 per cent, vowing to reduce taxes and bureaucracy to unleash China's entrepreneurial potential
Amid major concerns about China’s economic prospects and market stability, Premier Li Keqiang made clear for the first time that it was “impossible” for the country’s growth rate to fall to below 6.5 per cent.
Addressing the media after the close of the National People’s Congress’ annual session on Wednesday, Li insisted that Beijing would take the necessary steps, including cutting taxes, to keep headline GDP growth above 6.5 per cent.
READ MORE: In brief: Premier Li Keqiang on China’s growth target, US elections, and the future for Hong Kong and Taiwan
The efforts to dispel fears of a hard landing for the economy included an earlier pledge in the government work report to not raise the tax burden on any industry.
In his fourth annual post-NPC press conference at the Great Hall of the People, Li also said he was confident about Hong Kong’s future, vowing that the central government would support the city’s long-term prosperity.
But economic issues dominated the two-hour event, with the government scrambling for answers to rising labour tensions, mounting corporate debt and excess industrial capacity.
Nevertheless, when asked if economic growth might drop below 6.5 per cent, Li said “it’s impossible for me to side with you [and agree] that China is unable to meet the decided target”.
READ MORE: China prepares for ‘tough battle’ after setting growth target of at least 6.5 per cent a year
