Li Keqiang: Realizing the "six guarantees" can achieve positive economic growth
09:49 12-08-2020 reading
After the closing of the third session of the 13th National People's Congress on the afternoon of May 28, 2020, Premier Li Keqiang attended the press conference in the golden hall on the third floor of the Great Hall of the People and answered questions from Chinese and foreign reporters.
Li Keqiang: First of all, I would like to thank my friends in the media for reporting on the two sessions of China during the special period and overcoming the special difficulties. Because of the epidemic situation, we opened a press conference in the form of video connection. I think this distance will not affect the communication between us. Time is limited, please ask questions.
Reuters reporter: The New Coronary Pneumonia epidemic has severely affected the economies of countries around the world. Many governments have issued trillions of dollars in fiscal and monetary measures to deal with the impact of the New Coronary Pneumonia epidemic on the economy. I noticed that this year’s Chinese government work report did not set the GDP growth rate this year. According to Reuters estimates, the fiscal measures introduced in the government work report accounted for about 4% of China’s 2019 GDP, which is larger than some economies. Scientists' expectations are to be lowered. In the first quarter of this year, the Chinese economy contracted for the first time in decades. Will China introduce more stimulus measures in the coming months? In the longer term, does China have enough policy tools to cope with the continuous spread of the global epidemic and the constantly tense Sino-US relations?
Li Keqiang: This new coronary pneumonia epidemic has caused a serious impact on the world economy, which can be said to be rare in history. Recently, many major international organizations have predicted that this year's global economic growth will be negative 3%, or even more. The Chinese economy has been deeply integrated into the world economy, and it is impossible to stay out of it. So this year we have not determined a quantitative indicator of GDP growth, which is also realistic. However, we have determined the "six guarantees" and tasks for ensuring residents' employment, basic livelihood, and market subjects, which have a direct relationship with GDP economic growth. Economic growth is not unimportant. In fact, we are doing this to make the people feel more directly about economic growth and make economic growth of higher quality. Development is still the key and foundation for solving all problems in China. If we make a summary and realize the tasks of "six guarantees", especially the first "three guarantees", we will achieve a positive growth of China's economy this year, and we must strive to have a certain margin to promote China's economic stability.
Li Keqiang: You just said that the scale of our policies is lower than expected, but I have also heard many reflections that the scale policies we have issued are still strong. It should be said that to cope with this shock, we must grasp both strength and timing. When the new crown epidemic spread, we also introduced some policies, but at that time, the resumption of production and production was still in progress, and the resumption of business was hindered. Some policies could not be completely implemented, and many people stayed at home. But in this process, we have also accumulated experience. It is precisely based on the previous experience and also to judge the current situation. We have introduced a large-scale policy initiative in the government work report, which should be said to be strong.
Li Keqiang: We said in the past that we don’t do flood irrigation, but it is still the same, but we need special policies in special periods. We call it watering and fish farming. Without enough water, fish cannot live. But if it overflows, it will form bubbles, some people will arbitrage from it, the fish will not be raised, and some people will fish in muddy water. Therefore, the measures we take must be targeted, that is to say, we must find out the subcutaneous medicine. No matter where the money is raised or where it comes from or where it is used, a new path must be taken.
Li Keqiang: The funds raised by this large-scale policy can be said to be divided into two major pieces. One piece is the increase of deficits and the issuance of special anti-epidemic government bonds totaling two trillion yuan. Another bigger piece is the reduction and exemption of social insurance premiums. Some countries call payroll taxes, use unemployment insurance balances, promote profit-making by state-owned commercial banks, and lower prices by naturally monopolized enterprises to reduce their operating costs. This piece adds up to the previous one, about twice it. And we want to promote these funds to protect employment, people's livelihood and market players, and support residents' income. This is more than double digits compared to the total plate of all residents whose income is more than 40 trillion.
Li Keqiang: More importantly, where does the money go? Our scale policy can be said to rescue and stimulate market vitality as an enterprise, mainly to stabilize employment and protect people's livelihood, so that residents have the ability to consume, which is conducive to promoting consumption and stimulating the market. This can be said to be a market-oriented reform.
Li Keqiang: Money can make money, and money used for people can create new wealth, conserve tax sources, and make finance sustainable. We must stabilize the current economy and move forward steadily, but we must also avoid lifting our feet and raise dust to confuse future generations. However, if there are major changes in the economy or other areas, we still have policy space. Whether it is finance, finance, or social security, we have policy reserves, and we can introduce new policies in a timely manner, and we will not hesitate to maintain the stable operation of China’s economy. Vital.
Li Keqiang: We firmly believe that under the strong leadership of the Party Central Committee with Comrade Xi Jinping at the core, through the joint efforts of the people of the whole country, we will definitely overcome the current difficulties, achieve the goals and tasks for the whole year, and build a well-off society in an all-round way. Maintaining stability and stabilizing the basic market of China's economy is itself a contribution to the world, and will make a positive contribution to the recovery and growth of the world economy.