China needs 'strong measures' to support economy

Premier: China needs 'strong measures' to support economy

China announces plans to stabilise growth amid trade war with US

Chinese Premier Li Keqiang waves as he arrives for a press conference held after the closing session of China's National People's Congress (NPC) at the Great Hall of the People in Beijing, Friday, March 15, 2019. However, he added that boosting lending or government spending might "lead to future problems".

Last week Li laid out a lower growth target of 6.0-6.5 percent this year, from 6.6 percent growth in 2018, which was already the slowest pace for nearly three decades.

China is targeting a GDP growth range of 6 to 6.5 per cent this year, down from 6.6 per cent in 2018 - the slowest pace in 28 years.

Li's comments "reconfirm a consistent pro-growth stance, with clarity on fiscal easing and an earlier-than-expected effective date for tax cuts", Morgan Stanley said in a note, adding that it expects improved growth from the second quarter.

The central bank has cut banks' reserve requirement ratios (RRR) five times over the past year, with a two-stage RRR cut in January releasing a total of 1.5 trillion yuan ($223.23 billion) into the financial system.

Policymakers huddled in Beijing have talked up plans to support the economy, announcing billions of dollars in tax cuts, fee reductions, and financing support for small businesses.

According to the statistics provided by China's General Administration of Customs, the volume of trade between Russian Federation and China for January-February increased by 1.7% year-on-year, reaching $16 billion: exports from China to Russian Federation for the specified period decreased by 4.8% and stood at $7.07 billion.

The law, created to ease concerns among foreign companies about the difficulties they face in China, will ban forced technology transfer and illegal government "interference" in foreign business practices.

"For some time, China-US trade frictions have been given more prominence, but China-US negotiations have never stopped", Li said.

President Donald Trump and China's leader Xi Jinping were originally expected to meet at the end of March to sign an anticipated deal, but now that has reportedly been pushed back to sometime in April.

"China and the United States as two large economies have become closely entwined through years of growing their relationship and years of cooperation", Li said.

The enactment of a new foreign investment law by China's largely rubber-stamp legislature suggested that Beijing has made some concessions to Washington over contentious trade issues such as alleged intellectual property theft and forced technology transfer.

His comments came after increased global scrutiny of Chinese telecommunications giant Huawei Technologies Co Ltd, which has been caught in the cross-fire as trade tensions ratcheted up.

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