China's Premier Li Keqiang has reiterated his commitment to implementing targeted policies to enhance the country's economic recovery from the impact of the pandemic. During a seminar with researchers, Li emphasized the critical stage China is currently in, emphasizing the need for comprehensive and well-coordinated measures.
Li's remarks align with the expectations of private-sector economists who have predicted that China will refrain from implementing large-scale stimulus measures to address the economic slowdown. Instead, the focus is expected to be on measures such as reducing borrowing costs and providing targeted tax credits, taking into account the existing debt burden faced by local governments.
In addition to stabilizing growth and employment, Li expressed a commitment to establishing a regular communication system between the government and private-sector and foreign companies. This move aims to enhance the decision-making process and ensure that policies take into account the needs and suggestions of various stakeholders.
In line with this commitment, China's Minister of Commerce, Wang Wentao, recently held a meeting with 12 foreign pharmaceutical companies, including Merck & Co. and Pfizer. The purpose of the meeting was to gain insight into their operations in China and seek suggestions to optimize the business environment for foreign firms.
Li's emphasis on targeted measures and regular communication reflects China's cautious approach to economic recovery and the importance placed on addressing potential risks. By implementing measures that support growth, while also considering the concerns and suggestions of private-sector and foreign companies, China aims to ensure a balanced and sustainable recovery process.