Macroeconomic regulation should be applied, instead of massive stimulus, to withstand the downward pressure and make the Chinese economy run in a reasonable range, Premier Li Keqiang said on Monday at a plenary meeting of the State Council, China's Cabinet.
This year, China faces even more complex situations and an increasing number of challenges in its social and economic development, with escalating downward pressure, the premier said. Reform and opening-up should be deepened, while using targeted regulations, to boost market vitality, he said.
Market confidence should be reinforced to make a good start in the first quarter for economic development and create conditions to achieve this year's major objectives and goals, Li said.
Li spoke highly of China's economic growth last year, when the country was confronted with complex situations and challenges in domestic and international scenarios. He said major goals for the nation's social and economic development had been attained by achieving stable growth, good economic indicators and full employment.
These achievements have prepared the government with experience to tackle various challenges, he said, adding that the government should give close attention to difficulties and problems in China's development.
China's GDP, one of the major drivers of global economic growth, rose by 6.7 percent in the first three quarters last year compared with the same period in 2017, according to the National Bureau of Statistics. The nationwide nominal per capita disposable income－which is not adjusted to inflation－rose to 21,035 yuan ($3,109), an 8.8 percent increase over the same period in the previous year.
Li called on all government officials to further improve the business environment this year, and to cultivate new economic drivers, expand the domestic market for consumption and achieve balanced development for diverse industries and different regions.
Government at all levels should carefully perform its duties and advance all aspects of work for this year, especially regarding policies that have been approved for the benefit of enterprises and the public, Li said. He called on the government to use its full abilities to solve problems for enterprises.
The premier urged that preparations be made for economic management and market regulation, and ensuring basic life for disadvantaged people, ahead of the upcoming Spring Festival holiday.
The gathering deliberated on a draft of the Government Work Report, which will be delivered at the second annual session of the 13th National People's Congress in March. The premier said a good draft is beneficial to reaching consensus among all walks of life and improving the work of the government.