Li stresses need for reform

Premier Li Keqiang's talks in Gansu province on Monday underscored his determination that the nation should rely on reform, rather than pump-priming, to promote sustainable growth.

To achieve sustainable and healthy development, the authorities should stick to rebalancing the economy while maintaining growth, employment and inflation within a reasonable range, Li said at a meeting in Lanzhou, the provincial capital, attended by provincial heads from the country's western regions.

"Fundamentally, the government must rely on reform to release the utmost benefits, spur market and social vitality, and enhance domestic potential to promote long-term sustainable and healthy development," he said.

With the economy heading toward its expected limits, reform is needed to coordinate policies and "make precise moves" to maintain steady growth, he said.

"The major tasks and targets of the government are to achieve a sustainable economy, improve people's lives and promote social equity," he said.

With the global economy still in slow recovery, the domestic economy has achieved progress, but certain problems have been growing and now loom large, he said.

As China's economy saw a prolonged slowdown over the past two years, the government resolved to rebalance its outdated growth model, which is overly reliant on investment and exports.

Despite the protracted slowdown, the authorities have so far refrained from initiating a massive stimulus program to lift the economy, and have allowed leeway to proceed with structural reforms for the long-term good.

Since taking office in March, the new leadership has announced concrete reform plans, including delegating administrative power to lower levels and easing controls in the financial sector.

On Monday, People's Bank of China Governor Zhou Xiaochuan said the economy will not experience persistent slowdowns, an indicator that the bank is ready to free long-awaited deposit interest rates, a key step to fully liberalizing the financial markets.

On July 19, the central bank announced the lifting of controls on bank lending rates in a clear signal of the government's determination to push forward market-oriented reforms.