Li Keqiang speaks of “twin engines” of the Chinese economy

BEIJING – Speaking at the Davos forum, Chinese Premier Li Keqiang has spoken of concerns about a possible hard landing for the Chinese economy, stressing the importance of the “twin engines” of the Chinese economy - the “new engine in the shape of massive start-ups and innovations” and the “traditional engine, represented by Government intervention in economic growth, focussing on expansion of supply of public products and service”.

Li said he was confident that China’s 50% savings rate will ameliorate the issues of domestic debt and financial risks, ensuring the avoidance of any major regional financial crisis.

Commenting on the global economy, Li said “structural reform” will play a fundamental role in tackling international economic problems – with uncertain global economic prospects, the Chinese Premier said it is in most countries’ interest to adapt “open and innovative economic policies”.

As far as China is concerned, he said, the best way to transition from an economy reliant on investment, exports and real estate to one focussing on innovation and improvements in public services is “rapid action, balance and courage”  www.webershandwick.cn (ATI).