MNI China Press Digest June 29: GDP, Demand, NZ Links

Highlights from Chinese press reports on Monday:

• China can achieve sustained economic growth close to 5% if the services industry opens further, according to Keyu Jin, a professor of economics at the London School of Economics. Speaking at the World Economic Forum in China, Jin said Beijing’s drive for innovation-led growth will not happen quickly and policymakers should balance efforts with developing the services sector, which can raise employment and household income quicker. Jin also believed regulators can enhance China's financial industry by boosting connection with the international system.
• China’s economic foundation remains unsecure as industrial profits fell 12.6% y/y in May, according Sun Xiao, a statistician at the National Bureau of Statistics. Sun said authorities were dealing with a complex external environment and insufficient domestic demand, which had contributed to the slow recovery of corporate profits. In future, policymakers must improve connection between demand and supply, and implement innovation focused policy. (Source: Yicai)
• China will work with New Zealand to promote high quality cooperation to benefit both countries and the Asia-Pacific region, according to China’s Premier Li Qiang. Li said the two sides should increase trade and investment links by using the China-New Zealand FTA, and support regional economic cooperation in the Asia-Pacific region. New Zealand Prime Minister Chris Hipkins said both sides can work together to jointly promote economic recovery and address global challenges such as climate change. (Source: Yicai)