Countering concerns about China's economy

Li emphasized that opening-up at a faster pace, delivering the dividends of reform by further streamlining government and delegating power to the market and society, expanding domestic demand, accelerating the process of urbanization and boosting the service sector will give impetus to development, and said the government has defined "upper and lower limits" for economic performance to avoid excessive fluctuations, prevent inflation and ensure jobs.

Meanwhile, the government will continue to support the Doha round of World Trade Organization talks, work toward the signing of bilateral free trade agreements, upgrade the China-ASEAN Free Trade Area, and explore new ways to open up China to the outside world, such as the recently announced establishment of a free trade zone in Shanghai. China will maintain a reasonable scale of investment, with priority given to energy conservation, environmental protection, railway projects in the central and western regions, and municipal facilities.

Of the people living in the countryside, more than 100 million are set to be absorbed into cities over the next decade or so, and continued urbanization offers huge potential for expanding long-term domestic demand. The government will further help release demand by improving public services and supporting small businesses.

As the world's second-largest economy, China's economic transition is in line with both its short-term and long-term interests, and will benefit both itself and the world as a whole.

Over the past five years since the outbreak of the international financial crisis, China has been the biggest contributor to world economic growth. According to the International Monetary Fund, if China's economy grows at a rate of 7.5 percent for the whole year, the contribution of China's economic growth to global economic growth will be 27.76 percent, this is in a sharp contrast to the US' 12.35 percent.

China's "forum diplomacy" and economic diplomacy have been gaining momentum recently. Li attended both the 10th China-ASEAN Expo and the China-ASEAN Business and Investment Summit; Vice-President Li Yuanchao attended the third China-Eurasia Economic Development and Cooperation Forum; while President Xi Jinping delivered a speech at the G20 summit in Russia. These show China's new leadership has confidence in engaging in economic exchanges and it is looking to take the initiative.

At the forum, Li is expected to look to the future. In the course of the profound and complex changes taking place in the global economic growth pattern, China should continue to coordinate both internal and external elements, timely accelerate reform and make efforts to lead the healthy development of the world economy.

The author is deputy director of World Politics Research Institute, affiliated to the China Institutes of Contemporary International Relations.

(China Daily 09/11/2013 page9)