Highlights: Details from China's policy documents

  • Economy
  • Wednesday, 05 Mar 2014

Chinese premier Li Keqiang delivers a report during the opening session of the 12th National People's Congress (NPC) in the Great Hall of the People in Beijing on March 5, 2014. China's annual show of political theatre, the National People's Congress, opens this week - AFP Photo.

BEIJING: The following are comments from the policy reports delivered by Chinese Premier Li Keqiang, the finance ministry and the National Development and Reform Commission (NDRC), the country's top economic planner, at the country's annual parliament session.


"Expanding domestic demand is both a major economic driver and an important structural adjustment. Investment is key for stabilising economic growth.

"We will continue to implement a pro-active fiscal policy and prudent monetary policy. We will improve the macro-control policy framework, maintain a lower limit to ensure stable growth and employment and an upper limit to cap inflation.

"Monetary policy will be kept appropriate to promote a balance in supply and demand and create a stable monetary and financial environment.

"We will strengthen coordination between fiscal and monetary policies with industrial and investment policies, improve policy reserves and make timely and appropriate fine-tuning.

"In 2014, we are still in a complex environment with both favourable and unfavourable factors. The world economic recovery still faces instability and uncertainties. We are at a critical juncture ... The basic conditions underpinning development are undergoing profound changes; deep-seated problems are surfacing and painful adjustments need to be made, the pace of economic growth is changing and downward pressure on the economy is still relatively big.

"China is still a developing country in the primary stage of socialism, and development remains the key to solving all our country's problems. We must keep economic development as the central task and maintain a reasonable economic growth rate.

"Reforms are the biggest dividend. Currently, reforms have entered a critical stage and a deep water zone. We must rely on the people, break mental shackles and vested interests with determination as great as a warrior cutting his wrist, and deepen reforms in all fronts.

"In carrying out reforms, we need to focus on areas where the public call is the strongest, on the most pressing problems hindering economic and social development, and start from areas where there is extensive public consensus."

"Reform is the top priority for the government this year.

"We will establish a standard financing mechanism for local governments to issue bonds and place local government debt under budgetary management.

"We will continue to liberalise interest rates by granting financial institutions more power to set interest rates. We will steadily promote the establishment of small and medium-sized banks and other financial institutions by private capital, and guide private capital to invest in financial institutions...

"We will establish a deposit insurance and improve the risk disposal mechanism in financial institutions.

"We will continue to keep renminbi exchange rate basically stable at a reasonable and balanced level, expand the exchange rate floating range and push forward renminbi convertibility on the capital account."


"We will strengthen local government debt management and forestall and control fiscal risks. We shall not only put new debt under standardised management but appropriately handle outstanding debt to avoid any break in the chain of funding.

"We will study how to grant local governments the power to finance through borrowing as appropriate and as laid down by regulations, and create local government financing mechanisms mainly by issuing government bonds."


"We will keep the renminbi exchange rate basically stable at an appropriate and balanced level.

"We will tighten oversight over risks from credit, bonds, wealth investment products, interbank trading, trusts and similar businesses.

"We will keep a close watch on the cross-border flow of capital and prevent major shocks to economic and financial activities caused by high-volume, abnormal flows of capital.

"China's exports situation remains grave as competition in the international market is escalating, investment and trade protectionism is increasing." – Reuters

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China , economy , policy , reform , NDRC , 2014


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