BEIJING, March 5 Following are comments from the
policy reports delivered by Chinese Premier Li Keqiang, the
finance ministry and the National Development and Reform
Commission (NDRC), the country's top economic planner, at the
country's annual parliament session.
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"Expanding domestic demand is both a major economic driver
and an important structural adjustment. Investment is key for
stabilising economic growth.
"We will continue to implement a pro-active fiscal policy
and prudent monetary policy.
"We will improve the macro-control policy framework,
maintain a lower limit to ensure stable growth and employment
and an upper limit to cap inflation.
"Monetary policy will be kept appropriate to promote a
balance in supply and demand and create a stable monetary and
"We will strengthen coordination between fiscal and monetary
policies with industrial and investment policies, improve policy
reserves and make timely and appropriate fine-tuning."
"In 2014, we are still in a complex environment with both
favourable and unfavourable factors. The world economic recovery
still faces instability and uncertainties. We are at a critical
juncture ... The basic conditions underpinning development are
undergoing profound changes; deep-seated problems are surfacing
and painful adjustments need to be made, the pace of economic
growth is changing and downward pressure on the economy is still
"China is still a developing country in the primary stage of
socialism, and development remains the key to solving all our
country's problems. We must keep economic development as the
central task and maintain a reasonable economic growth rate."
"Reforms are the biggest dividend. Currently, reforms have
entered a critical stage and a deep water zone. We must rely on
the people, break mental shackles and vested interests with
determination as great as a warrior cutting his wrist, and
deepen reforms in all fronts.
"In carrying out reforms, we need to focus on areas where
the public call is the strongest, on the most pressing problems
hindering economic and social development, and start from areas
where there is extensive public consensus."
"Reform is the top priority for the government this year.
"We will establish a standard financing mechanism for local
governments to issue bonds and place local government debt under
"We will continue to liberalise interest rates by granting
financial institutions more power to set interest rates. We will
steadily promote the establishment of small and medium-sized
banks and other financial institutions by private capital, and
guide private capital to invest in financial institutions ...
"We will establish a deposit insurance and improve the risk
disposal mechanism in financial institutions.
"We will continue to keep renminbi exchange rate basically
stable at a reasonable and balanced level, expand the exchange
rate floating range and push forward renminbi convertibility on
the capital account."
"We will strengthen local government debt management and
forestall and control fiscal risks. We shall not only put new
debt under standardised management but appropriately handle
outstanding debt to avoid any break in the chain of funding.
"We will study how to grant local governments the power to
finance through borrowing as appropriate and as laid down by
regulations, and create local government financing mechanisms
mainly by issuing government bonds."
"We will keep the renminbi exchange rate basically stable at
an appropriate and balanced level.
"We will tighten oversight over risks from credit, bonds,
wealth investment products, interbank trading, trusts and
"We will keep a close watch on the cross-border flow of
capital and prevent major shocks to economic and financial
activities caused by high-volume, abnormal flows of capital.
"China's exports situation remains grave as competition in
the international market is escalating, investment and trade
protectionism is increasing."