Chinese economy not to suffer hard landing: premier

Chinese Premier Li Keqiang delivers a keynote speech at the World Economic Forum (WEF) annual meeting in Davos, Switzerland, on Jan 21, 2015. [Photo/Xinhua]

DAVOS, Switzerland - Chinese Premier Li Keqiang said here Wednesday that the world's second largest economy is not heading for a hard landing.

As the Chinese economy has entered a state of new normal, the shift of growth gear from high speed to medium-to-high speed reflects the profound adjustment of the world economy, and is consistent with the law of economics, Li said in a keynote speech at the World Economic Forum (WEF) annual meeting.

In 2015, China plans to withstand downward pressure and continue with its strategic focus, added the premier.

"We will continue to pursue a proactive fiscal policy and a prudent monetary policy," Li said. "We will step up anticipatory adjustment and fine-tuning as well as targeted macro-regulation, in order to stabilize economic growth, upgrade its structure and achieve better quality and performance."

For the Chinese economy to maintain medium-to-high speed of growth and achieve medium-to-high level of development, Li said, China must properly use the hand of the government and the hand of the market, and give full scope to both the traditional and new engines of growth.

"To foster a new engine of growth," Li said, "we need to encourage mass entrepreneurship and innovation, and mobilize the wisdom and power of the people."

"To transform the traditional engine of growth, we need to focus on increasing the supply of public goods and services, and strengthening the weak link of the economy," the premier said.

China, he added, will continue to promote trade and investment liberalization and facilitation, and open up its service sector, central and western regions as well as the capital market wider to the outside world.

"China will encourage its companies to explore the international market, and work for common development with other countries through greater openness towards each other," Li said.

Li arrived here Tuesday for the WEF gathering in this ski resort and a working visit to Switzerland.

This year's WEF winter meeting, which opened Wednesday, will run till Saturday under the overarching theme "The New Global Context."

Over 2,500 participants from across the world are expected to attend the event and exchange views on a wide range of issues, including global economy, environmental protection and non-conventional security.