Message of commitment from Chinese Premier Li

Premier Li delivered a speech at the World Economic Forum (WEF) meeting held in Davos, Switzerland.

Stating that the Chinese economy has developed steadily through opening up for more than 40 years and has contributed to the global economy, Li said, "No matter how the world changes, China will remain committed to its fundamental national policy of opening up and will open its doors even wider to the world."

Comparing the Chinese economy to the Alps, where the town of Davos is nestled at the foot of the mountains, Li said, "Our European friends say that if you want to see the true majesty of the Alps, you must look at them from a distance. It is the same when looking at the Chinese economy; you must broaden your vision, look at the big picture in a comprehensive and objective way, and view it from a panoramic perspective to grasp where it has come from and where it is going."

Pointing out that China's contribution to global economic growth has reached 30 percent over the years, Li emphasized that the economy showed a strong recovery momentum in 2023 following the COVID-19 pandemic.

GROWTH EXPECTED

Li reported that China's gross domestic product is expected to exceed its annual growth target in 2023 with an increase of 5.2 percent.

The Chinese government had set an economic growth target of "around 5 percent" for 2023.

Underlining that they did not resort to passive stimulus measures while encouraging economic recovery, and that they did not take steps that would lead to the accumulation of long-term risks for short-term growth, Li emphasized that they focused on internal dynamics instead.

Li stated that the foundations of China's long-term growth are solid, that it possesses advanced industrial infrastructure in all categories, accounts for 30 percent of the global value-added produced in the manufacturing industry, and has ranked first in the world in this field for 14 years.

Expressing the view that the demographic advantage provided by the country's large population has transformed into a talent advantage through high-quality development in terms of production factors, Li pointed out that the country has reached a position where it provides approximately 30 percent of global capital, moving from a capital deficit.

Li stated that China ranks second in the world in terms of data production and that its innovation capacity is developing with research and development expenditures and high-tech investments that record double-digit growth every year.

ATTENTION DRAWN TO THE INCREASE IN THE MIDDLE-INCOME GROUP

Pointing out that the Chinese market has the dynamic to stimulate global demand against weakness in external demand due to its breadth and depth, Li stated that the country's middle-income group of 400 million is projected to double to 800 million within a decade.

Li noted that China's urbanization rate is still 10 percent lower compared to developed countries, and underscored that a potential rural migrant population of approximately 300 million will create a need for new investments in housing, education, and health.

Noting that China is in the midst of a significant breakthrough in green development, meets approximately half of the world's solar energy production, and that more than half of the world's electric vehicles are in China, Li drew attention to the fact that new sectors such as green energy, green infrastructure, green transportation, and green lifestyles create an investment and consumption market of 10 trillion yuan (1.4 trillion dollars) annually.

"WE WILL REMAIN COMMITTED TO OPENING UP"

Li stated that China has shared its economic opportunities with the world through its opening-up policy spanning more than 40 years, and has become the largest trading partner for more than 140 countries and regions in the world today.

Pointing out that the country's average tariff rate has fallen to 7.3 percent, a level close to that of developed countries in the World Trade Organization, Li emphasized that many multinational companies have increased their operations in the Chinese market in recent years, leveraging the country's manufacturing capabilities to increase their global influence.

Li pointed out that the return rate on foreign direct investment in China over the last 5 years has been around 9 percent annually, which is a highly competitive level globally, and said, "Choosing the Chinese market is an opportunity, not a risk, for companies."

Stating that they will accelerate the improvement of institutional arrangements for foreign investments, shorten the negative list for foreign investment, and remove all barriers to foreign access to the manufacturing sector to ensure that foreign businesses receive national treatment, Li said, "We will continue to embrace investments from every country in the world and work to create a market-oriented, law-based, world-class business environment."

Li, who was elected premier at the National People's Congress held in March 2023, is representing China at the Davos meeting for the first time.

Li had previously attended and delivered a speech at the World Economic Forum's summer meeting held in Tianjin, China, in June 2023.

News Source: AA