2016年CRI Premier Li meets int'l finance heads to boost world economy

Premier 1 Li Keqiang met with the heads of world's six major financial bodies, including the International Monetary 2 Fund, the World Bank, and the World Trade Organization this morning.

During the meeting, he outlined the current state of China's economy, which has been undergoing major structural 3 reforms.

"China will continue to advance the reform of the market-determined 4 exchange rate. China's economy is, in general, in a stable condition. The savings 5 rate is relatively 6 high. The trend for our economic development is positive. We will maintain our currency levels at a stable level and not engage in currency or trade wars."

A press release from the meeting says China is committed to fostering innovation and other new growth engines, deepening structural reform in particular on the supply-side.

This coincides with the Chinese government's decision on Wednesday to officially implement 7 a five-year plan for technological 8 innovation.

A government statement says the new plan will facilitate the rise of new economies and propel ongoing 9 economic upgrades in China.

The International Monetary Fund has lowered the forecast for global economic growth, due to the uncertainties 10 brought about by the UK's decision to leave the European Union.

However, Christine Lagarde, Managing Director of IMF, said China offers a different picture.

"We've increased the forecast for China in 2016 by 0.1%. Because we have witnessed the determined and decisive implementation 11 of reform. Second is the support given to the economy, in order to encourage growth going forward. On the later point, it did not take for vast fiscal 12 stimulus 13, but simply some consolidate 14 steady support in order to make sure that growth was indeed and sustainable."

China's moves to cut excess capacity, especially in the coal and steel sectors 15, were another issue that grabbed the limelight at the round-table meeting.

Premier Li Keqiang said the pressure was coming from inside rather than abroad.

"It's necessary for China to cut overcapacity in order to adjust the industrial structure. China's output of crude steel is relatively large. Nearly 90% of the production is to meet domestic needs for urbanization and industrialization. The export volume is relatively low. And we also don't encourage or support enterprises to export crude steel. We even raised export tariffs 16, to prevent the spread of high-polluting and energy consuming enterprises in the country."

World Bank President Jim Yong Kim praised China's contribution to multilateralism, as the only country to host 2 new multilateral organizations in the past two years.

"All of us here at this table believe very strongly that what we need is more multilateralism, and more trade. So my most important take-away is that I'm grateful to premier Li and the Chinese government for this message of embracing multilateralism, and working together to solve the world's most difficult problems. This is a message very much needed today."

Participants at the meeting also include the chiefs of the International Labor 17 Organization, the Organization for Economic Cooperation and Development, and the Financial Stability Board.

They have agreed that the round-table should become a regular mechanism 18 to strengthen ties between China and international organizations.

The round-table meeting was held ahead of this weekend's gathering 19 of finance officials of the Group of 20 major economies in Chengdu.