MNI POLICY: China' Li Sees Positive Growth On Strong Policies

--Despite No Formal Target, GDP Expected To Grow In 2020

     BEIJING (MNI) - China will likely see positive growth this year even if

there isn't a quantifiable GDP goal, Premier Li Keqiang said Thursday in his

annual address to the media. China has set six tasks instead of a hard growth

target, including protecting jobs, people's welfare and businesses. Achieving

these goals will lead to positive and high growth, he said.

     According to Li, China has fiscal, financial and social welfare policies in

reserve to manage future crisis and will enact them in a timely fashion, Li said

at the conclusion of the National People's Congress.

     On relationships with the U.S., Li struck a conciliatory tone. Recognizing

new problems and challenges, Li said the relationship is "very important" as the

two are both the permanent members of the United Nations Security Council. With

wide-ranging mutual interests, there are areas for cooperation, he said.

     Any decoupling between the two major economies is good for neither and will

harm the world, he said. While differences and conflicts are inevitable, the two

sides should respect each other's core interests and major concerns while

embracing cooperation.

     There has been a significant fall in cooperation among nations after the

Covid-19 outbreak, Li said. China will keep to its opening-up policies and

further expand cooperation. Adjustments in global industrial supply chains are

market-driven, Li said, urging nations to keep their doors open.

     Here are further highlights from Li's annual meeting with the press:

     - China is committed to signing the RCEP at end of this year. China also

promotes free trade with Japan and South Korea. China is "positive and open"

towards joining the CPTPP, or Comprehensive Progressive Trans-Pacific

Partnership, the successor to TPP after the U.S. withdrew from the planned pact.

     - China will not flood its economy with liquidity and has refrained from

policies that may create froth; it instead will continue to keep measures

targeted and timely, Li said in response to question that the government

measures have been relatively moderate.

     - Without positive growth, the pandemic will be difficult to control, Li

said. Nations should further open up to promote liberalisation of trade and

facilitate investment to minimise the impact of the pandemic, Li said.

     - China will impose measures, such as repayment relief of insurance fees,

enhanced unemployment insurance, interests concession of state-owned banks and

prices reduction of monopolized industries. The support from all above measures

will be twice as big as the total CNY2 trillion released by the rising fiscal

deficit and the special treasuries bonds for Covid-19, he said.

     - China will issue CNY1.6 trillion special local government bonds this

year, and CNY2 trillion in treasury bonds, making up 20-30% of the new stimulus

be introduced over the next 12 months, Li said. These investments will be for

new infrastructure, new organizations and improving people's lives.

     - China is open to international cooperation on research and development on

vaccines, effective medicines and testing reagents and the deliverables of the

RD will be global public good, Li added. China will continue to adopt

science-based, open and transparent approach in dealing with Covid-19 as the

country is still seeing sporadic cases and no coverup will be allowed, Li said.

     - Accounting for the effect of the outbreak, China will ensure to create

more than 9 million jobs, lower than last year's level, and it must drive

certain economic target. China will provide measures to help meet job needs of

new graduates, ex-military service personnel and rural migrant workers, he said.

     - "One Country, Two Systems" is China's basic state policy. The Hong Kong

security law is to ensure the long-term prosperity and stability.

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: archie.zhang@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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