2015年CRI Chinese Premier Says Chinese Economy within Proper Range amid Pressures

Using a popular Chinese quip, Premier 1 Li Keqiang says China has been wrongly-criticized for creating the possibility of a currency war with the recent depreciation 2 of the Renminbi.

"It's like you are shot by a bullet even though you have assumed a prostrate 3 position. After a small-scale depreciation, the exchange rate of the Renminbi is now in a continuous stable state. There is no basis for us to continuously devalue the Renminbi. The economy of China is operating within a reasonable range. We have a sufficient amount of foreign reserves, and the trade surplus is still increasing. All this shows that the Renminbi will be kept in a balanced and stable state and within a reasonable range."

Offering further assurance, Li Keqiang says there is no intention of China trying to boost exports through the depreciation of the yuan.

"We are not intending to stimulate 4 exports by devaluating the Renminbi because this is not in accordance with our direction of economic structural 5 adjustments. A continuous depreciation of the yuan will not benefit the internationalization of the Chinese currency. It is not a good policy choice for China. We've already stated our intentions of allowing the Renminbi be part of the IMF's Special Drawing Rights basket. Instead of being a source of global financial risk, we know China remains 6 one of the drivers of global growth. "

At the same time, the Premier has also addressed the recent downturn in the Chinese stock markets.

Li Keqiang has told the forum 7 in Dalian the government's intervention 8 in the markets is meant only to prevent systemic risk.

"The measures are normal practice in global markets. They were in no way meant to replace the market or weaken the role of the financial markets. For our next step, we will continue to persist with a market-oriented, law-based system to establish an open and transparent 9 capital market which will enjoy long-term healthy development."

On the downward press the Chinese economy currently faces, Li Keqiang has told the group the Chinese economy is stabilizing 10, despite a slower growth pace.

He also says the slower growth is not going to affect the current strategy of structural adjustments.

"China is promoting the structural reform. In the process, the change of growth engines can lead to some economic fluctuations 11. This is inevitable 12. We will keep deepening economic reforms and promoting structural adjustments. The Chinese government is capable of maintaining the economic growth at a medium-to-high level."

At the same time, Li Keqiang has also told the crowd of global business leaders the Chinese government is moving to make it easier for foreigners to invest in China.

Arif Masood Naqvi, founder 13 and CEO of the Abraaj Group, is among those who says he appreciates the candid 14 responses from the Premier.

"Fantastic clarity. I really enjoyed it. So he is very clear and very transparent about all the issues that China faces and how China intends to address them. And I think he is also very clear about where the opportunities for foreign investors 15 are. I think that is very refreshing 16 and good to hear a leader to say that. To me people dodge 17 the questions. He was very clear in answering every question."

Premier Li Keqiang is set to deliver a keynote speech at the Summer Davos Forum later on this Thursday.