Key Takeaways
- Premier Li Qiang underscored China's dedication to an open and inclusive global economic environment, strongly criticizing the surge in unilateral and protectionist measures that have severely disrupted the world economic order and negatively impacted developing countries.
- China is set to liberalize its telecom and medical sectors through pilot programs and will prioritize making foreign businesses feel more secure and supported in the country.
- The Premier announced that intensive and effective micro policies will be deployed to ensure steady economic growth, projecting the Chinese economy to exceed 170 trillion yuan within the next five years.
- Key efforts will also target developing and expanding digital growth drivers and advancing reforms to global economic and trading systems for enhanced fairness and transparency.
- In related economic news, a private survey indicated that China's services activity grew in line with expectations last month, largely supported by increased holiday spending and travel.
Chinese Premier Li Qiang has delivered a robust message on global trade and domestic economic policy, emphasizing China's commitment to an open world economy while decrying the rise of protectionism. Speaking on Wednesday, Li stated that "some unilateral and protectionist measures have had severe impact on the economic world order". He stressed the critical importance of upholding equality, mutual benefit, and strengthening the foundation of shared legitimate interests, particularly as global economic growth slows.
Global Trade and Governance: A Call for Fairness and Cooperation
Premier Li highlighted that international trade rules have been "seriously compromised" by a surge in trade restrictions worldwide over the past few years. He noted that the term "tariff" has attracted significant global attention this year, reflecting the disruptive impact of such measures. These challenges have made it harder to conduct business and have particularly harmed the interests of developing countries.
In response, Li called for urgent and intensified efforts to reinforce global economic governance. China aims to push forward governance reforms and reform the global system of trade rules to make them fairer, more reasonable, and transparent. This stance reinforces Beijing's positioning as a staunch defender of multilateral trade amidst rising global tariffs and economic fragmentation. Li's remarks at various international forums, including the UN General Assembly and ASEAN Plus Three Summit, consistently warned against unilateralism and emphasized the need for continued cooperation and free trade. He previously criticized "tariff hikes and the erection of walls and barriers" as a major cause of global economic doldrums.
Supporting Foreign Investment and Domestic Economic Drivers
Domestically, Premier Li affirmed that ensuring foreign firms feel comfortable and supported in China is a priority. Efforts will be made to make foreign businesses feel more secure and at ease with their operations and development within the country. This includes focusing efforts on pilot programs designed to liberalize the telecom and medical industries, signaling a move towards greater market access.
China also plans to implement more intensive and effective micro policies to promote steady economic growth. The Premier stated that efforts would focus on developing and expanding digital growth drivers, aligning with the country's broader strategy for high-quality development. China's commitment to import growth remains firm despite recent market challenges, demonstrating its dedication to the common good and fulfilling its international duties.
Economic Performance and Outlook
Looking ahead, Premier Li projected that the Chinese economy is expected to exceed 170 trillion yuan in five years. This comes as China continues to navigate a complex global economic landscape. In a positive sign for the economy, a private survey revealed that China’s services activity grew in line with expectations last month. This growth was largely attributed to increased holiday spending and travel by households, which helped insulate the industry from a broader economic slowdown. Earlier data showed China's service sector activity hitting a 15-month high in August, with the RatingDog China services purchasing managers' index (PMI) rising to 53.0. While growth moderated slightly in September to 52.9, it remained above the 50-mark indicating expansion.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.