Prime Minister Li Keqiang, the head of the Chinese economy, said the Chinese economy was under downward pressure, but said it would not expand liquidity supply significantly.
According to the People’s Daily on the 18th, Prime Minister Lee attended the World Economic Forum’s WEF-hosted forum via video connection on the 16th and said, “The economy as a whole is recovering while comprehensively promoting quarantine and economic and social development, but at the same time, there is a new downward pressure.” said.
“There is no change in the long-term trend of the Chinese economy improving,” Li said, adding that he would adhere to the principle of not providing excessive liquidity by comparing the irrigation law to the irrigation law that fills farmland with water.
This came amid observations that China’s economic recovery efforts could be stimulated, such as by adjusting monetary policy in the direction of easing, as the recovery momentum of the Chinese economy has weakened.
China’s quarterly economic growth, which reached 18.3% in the first quarter of last year, fell to 4.9% in the third quarter due to a combination of negative factors such as the re-spread of Corona 19 and the rapid cooling of the real estate market due to the Hengda incident.
The National Financial Development Lab under the Academy of Social Sciences, a government think tank, recommended an easing of monetary policy, but the Chinese authorities are in the position to respond first with fiscal policies such as tax cuts.
At the forum, Prime Minister Lee said, “We will enhance the vitality of market players by introducing more intensive tax cuts and administrative cost reduction policies at an appropriate time.”