Important meetings for Chinese economy

The economic meetings of the State Council have become an important channel for the central authority to communicate with the market and keep the Chinese economy on the right track, said an article in China Business News. Excerpts:

In a recent meeting with representatives of State-owned and private enterprises, Premier Li Keqiang pointed out that prosperous enterprises are the foundation of a booming economy, and it is the government’s responsibility to create a good environment for the healthy development of business by cutting red tape and letting the market play a decisive role in allocating resources.

Li has presided over at least five meetings in the State Council on the economic situation in the first half of the year. He has sent out three messages that explain his view of the Chinese economy.

First, Li showed his confidence, despite downward pressure on the economy. He paid more attention to restructuring, deepening of reforms, market expectations and improvement of people’s livelihoods than economic growth. The tenacity and potential of the economy is more important for sustainable development in the long run. Employment and inflation are two restrictive factors that concern Li most. Li’s foresight and pragmatism consolidate entrepreneurs’ confidence in the prospects of the Chinese economy.

Second, Li has never stopped pressing governments at various levels to delegate their powers to the market and society, to promote a fair competitive environment. He urges governments to mete out their “negative list of powers” to increase the transparency of government operations and cut government expenditure.

Third, Li always encourages enterprises to boldly take the opportunities to upgrade their industries and innovate their technologies. Entrepreneurs should not hold a wait-and-see attitude to wait for changes in the market. Instead, businesses should have the audacity to improve their competitiveness in the market.