China's new premier seeks to reassure private sector as parliament wraps
up
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[March 13, 2023] By
Eduardo Baptista and Yew Lun Tian
BEIJING (Reuters) -New Chinese Premier Li Qiang sought to reassure the
country's private sector on Monday, saying the environment for
entrepreneurial businesses will improve and that equal treatment would
be given to all types of companies.
Li, the former Communist Party chief of Shanghai, was installed as
premier on Saturday during the annual session of China's parliament and
is tasked with reviving the world's second-largest economy after three
years of COVID curbs.
Making his public debut in a media conference, the close ally of
President Xi Jinping said China will take measures to boost jobs and
urged officials at all levels to "make friends" with entrepreneurs.
"Developing the economy is the fundamental solution for creating jobs,"
Li, 63, said in the Great Hall of the People in central Beijing after
the closing of the parliamentary session.
Li faces challenges including weak confidence among consumers and
private industry, sluggish demand for exports and worsening relations
with the United States.
A career bureaucrat in some of China's most economically vibrant
regions, Li talked up his track record with the private sector, which
has been rattled in recent years by a sweeping regulatory clampdown
targeting industries including internet platforms and private education.
"Indeed, last year there were some incorrect remarks about the
development of the private economy, which worried some entrepreneurs,"
Li said in his televised address, without giving details.
"Private entrepreneurs or enterprises will enjoy a better environment
and broader space for development ... we will create a level playing
field for all kinds of market entities and we will make further efforts
to support private entrepreneurs to grow and thrive," he added.
At the opening of the annual parliamentary session, China set a GDP
growth target of about 5% percent, its lowest goal in nearly three
decades, after the economy grew just 3% last year.
Achieving the target would not be easy, with China facing many
difficulties this year, Li said.
Li replaces Li Keqiang, who retired after serving two five-year terms,
during which he was seen to be increasingly sidelined as Xi tightened
his grip on control of the economy.
Investors hope the new premier's close ties with Xi enable him to push
for more business-friendly policies, but analysts said his remarks on
Monday gave little insight on this front.
The government should address the easier access to financing state-owned
companies currently enjoy over their private sector counterparts, as
well as consider more stimulus measures for private companies hit hard
by three years of COVID, according to Alfredo Montufar-Helu, head of
think tank The Conference Board's China Center.
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Chinese Premier Li Qiang, alongside
Chinese Vice Premiers Ding Xuexiang and He Lifeng, attends a news
conference following the closing session of the National People's
Congress (NPC), at the Great Hall of the People, in Beijing, China
March 13, 2023. REUTERS/Florence Lo/Pool
"Achieving the (government) goals of stabilizing economic growth and
building self-reliance clearly necessitates the participation of the
private sector, as it contributes to over half of China’s GDP growth
and accounts for the majority of employment... but the devil is in
the details," he said.
At under 90 minutes, Li's media briefing was shorter than the annual
sessions held in recent years by his predecessor, which could exceed
two hours.
'GREAT WALL OF STEEL'
Earlier on Monday, Xi said China needs security to develop and must
modernise its military to make it a "Great Wall of Steel", calling
for China to step up its ability to safeguard national security and
manage public security.
Xi was speaking for the first time since the National People's
Congress, China's parliament, unanimously voted to confirm him in a
precedent-breaking third term as China's president.
"Security is the foundation for development, stability is the
prerequisite for prosperity," Xi, 69, said.
The ruling Communist Party is expected to tighten party oversight
over security matters, a move that comes after Xi replaced top
security officials with his trusted allies.
Xi said China will distribute the fruits of development more
equitably, in an effort towards "common prosperity", his signature
policy of reducing the wealth gap by ways such as asking private
firms to pitch in.
China must achieve greater self-reliance and strength in science and
technology, Xi said, a call that comes as the United States blocks
China's access to chip making equipment and other cutting-edge
technologies.
On Taiwan, the self-ruled island which China claims its own and a
major producer of semiconductors, Xi said China must oppose
pro-independence and secessionist activities and the interference of
external forces.
China's relations with the United States sank to a low after U.S.
House Speaker Nancy Pelosi visited Taiwan in August 2022. China
launched unprecedented military drills around Taiwan and halted
military dialogue with Washington.
(Reporting by Yew Lun Tian, Eduardo Baptista, Ryan Woo and the
Beijing newsroom; Writing by Tony Munroe; Editing by Kim Coghill,
Lincoln Feast and Gerry Doyle.)
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