Premier Li stresses more targeted, effective economic policy

China will make economic policy and measures more targeted and effective to cope with changes in the economy and press ahead with high-quality development, Premier Li Keqiang has said.

Chinese Premier Li Keqiang presides over a meeting with economic experts and entrepreneurs to collect opinions on the annual government work report scheduled to be published in March, in Beijing, capital of China, Jan. 22, 2018. Chinese Vice Premier Zhang Gaoli and Wang Yang, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and vice premier, also attended the meeting. [Photo/Xinhua]

The economy held steady last year and posted better-than-expected results in not only solid growth but structural adjustment and quality improvement, Li said on Monday at a meeting with economic experts and entrepreneurs.

But he still warned of challenges and risks. "With rising economic volume and further integration into the global economy, the Chinese economy has seen new characteristics and changes, and the complexity has also grown markedly."

Advancing high-quality development and creating a modern economic system require stronger ability to run the economy and improve social governance, Li said, urging better understanding of the laws of economics and demanding more targeted measures.

The meeting was held to collect opinions on the annual government work report scheduled to be published in March.

Li called on more efforts to deepen supply-side structural reform and take proper macro regulation. "We should increasingly rely on reform, opening up and innovation to propel transformation and foster new economic drivers."

Liu Yanhua, a counsellor of the State Council, suggested China build more innovation service platforms, while Zhou Qiren, a professor of Peking University, advised more reforms in response to spillover effects from policy changes of other major economies.

The role of micro entities was highlighted during Li's speech. "Governments should continue to simplify administration, cut red tape and reduce taxes and fees...for a better business environment."

China will work to improve competitiveness of state-owned enterprises (SOEs) and protect property rights of private businesses, Li said.

FAW Group chairman Xu Liuping said China should speed up mixed-ownership reform in SOEs, while Zhang Shiping, chairman of Shandong Weiqiao Pioneering Group, said stable policies can stimulate private investment.

Li also said China will push forward people-centered urbanization, help migrant workers to integrate into cities and improve social governance.

China should tap the potential of small cities to drive consumption upgrades, Morgan Stanley economist Robin Xing said.