Why is China confident in its economy?https://news.cgtn.com/news/3d3d674d33637a4d33457a6333566d54/img/7c1e3c037d2e48cbb2c5005dc10fff3f/7c1e3c037d2e48cbb2c5005dc10fff3f.jpg
(CGTN) Beijing has vowed to revitalize the world's second largest economy by creating a fairer and friendlier environment for domestic businesses and foreign investors, according to key messages released during China's 10.5-day legislative session.
Acknowledging the country's economy faces "new downward pressure," Chinese Premier Li Keqiang stressed on Friday that the government will not allow major economic indicators to slide out of the proper range.
The 6-6.5 percent gross domestic product (GDP) growth target for 2019 is compatible with the GDP expansion of 6.6 percent achieved last year, Li told a press conference following the conclusion of the second session of the 13th National People's Congress (NPC), adding that the new target has sent a message of stability to the market.
The premier's frankness and confidence over the economy were in line with the down-to-earth style that Chinese leaders have shown in talking about tricky issues during the annual political season.
The premier handled the questions with confidence. delivering his messages at an appropriate pace.
Such self-confidence inspired trust in the content of his messages. Having said that though, I am wondering why the RMB has appreciated so much against the dollar .
There is a deja vu feeling from the residues of the Plaza Accord of 1985, at which time the Japanese Yen kept on appreciating until Japan's economy descended into the doldrums for the next thirty years.
Of course the two situations are very different as I had explained elsewhere, but the coincidences are worrisome.
And so many of the structural reforms coincide with what the U.S. wanted during the trade talks. Was that also a coincidence?
What does Vice-Mininster Liu have up his sleeves?
Despite the reservations, I remain optimistic about the upswing forecast of China's economy, because the historical megatrend is on our side.
Why is China confident in its economy?
Because it has no choice. It has to display that confidence no matter what.
government will not allow major economic indicators to slide out of the proper range
If nothing else helps, adjust the range of what is proper, or how the indicators are calculated.
China government must get top brains in the proper posts. Do away with the practice of having not qualified or educated to head and direct. That will be BLINDMAN AND THE ELEPHANT!
Its good to grow if that is a natural one. Any country should not be intoxicated by having to maintain growth. People should understand that sometimes lower growth rates or even breaking even is just fine. Its pointless to growth now but goes broke a decade down the road.
China's Confician theory is that an economy needs to run on genuine natural effort, not costly steroid boosted growth. A sportsman who boost performance with drugs will sooner or later pay for it with his health. All the glory gained will come to nothing when he has to spend the later years recuperating.