China’s Premier Li Keqiang spoke on Monday about the health of his nation’s economy, and his plans to deal with its current struggles. Li initially sounded optimistic, stating that China’s economy has displayed more positive signals. Yet, he followed up that sentiment with words of caution, as he continued to say that downward pressures were still looming. Li addressed that issue by swearing that he would take action to solve the problems caused by overcapacity. Li’s exact quote regarding the issue is, “There are more positive factors in economic operations, but the downward pressure remains relatively big.” When speaking to provincial and municipal officials, Li was quoted as saying that China’s government will implement “supply-side reforms” while maintaining economic growth within a sensible range.
Li shared a multitude of ideas that he and other Chinese officials will seek to put in place in order to spur economic growth. However, he spoke cautiously before launching into his plans by saying, “We cannot ignore risks in some sectors.” Then, Li went on to say that the Chinese government would guarantee the launch of investment ventures in an expedient manner in an effort to aide economic growth. Furthermore, the government will shorten the length of reforms to do away with obsolete capacity in both the coal and steel sectors. Finally, it will utilize “market-based” debt-to-equity swaps in order to lower the levels of debt in the nation’s companies.
According to the nation’s bureau of statistics’ statement released on Monday, the Chinese economy has experienced optimistic changes since the year began. Also, Premier Li stated last week publicly that the nation’s economic signals displayed signs of advancement in the first quarter. Meanwhile, investor’s are waiting for next week, as the Chinese government is scheduled to publish major economic data, including but not limited to growth in the first quarter.