China’s new Premier Li Qiang said on Monday that policymakers will focus on the quality of growth. While saying that China’s growth target of 5% will not be easy to achieve, policymakers will push for growth, he added.
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BEIJING – China’s new Premier Li Qiang said on Monday that policymakers will focus on the quality of growth – especially on housing needs, income, education and health care.
His comments reflect how Beijing is still focused on priorities other than its own growth.
Li said China’s focus has shifted to what he calls high-quality development, such as building so-called green technologies and industries.
In terms of macro policy, he said, leaders will focus on stability, improving domestic and external demand, technological innovation and spreading risks.
He said China’s growth target of around 5% would not be easy to achieve. But he said policymakers would push for growth, and said non-state-owned companies would have greater room for development.
China’s cabinet reshuffle
Li was named China’s new prime minister on Sunday, in a much-anticipated move. He is a protégé of Chinese President Xi Jinping and has never served as deputy prime minister – the appointment is without precedent.
On Friday, Xi won an unprecedented third term as president, increasing his power.
Xi is expected to retain his role at this month’s largely ceremonial parliamentary meeting, known as the “Two Sessions.” The annual meeting is a meeting of the advisory and legislative group, the National People’s Congress.
In another leadership change announced over the weekend, He Lifeng was among four people named as deputy prime ministers. He used to head the National Development and Reform Commission, China’s economic planning agency.
Some ministers remain in their positions. Yi Gang remains head of the People’s Bank of China, Liu Kun heads Finance Minister and Commerce Minister Wang Wentao, according to state media.
New Chinese Prime Minister Li Qiang, right, is a protégé of Chinese President Xi Jinping, left.
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Beijing has yet to announce who will lead the China Securities Regulatory Commission and the newly formed National Financial Regulatory Administration, which replaced the China Banking and Insurance Regulatory Commission and expanded its role.
The administration is set to oversee most of the financial industry – with the exception of the securities industry.
Beijing established a new financial administration as part of a restructuring of the State Council, the highest executive body of the Chinese government. As prime minister, Li Qiang presides over the State Council.
The restructuring comes as the ruling Chinese Communist Party is expected to increase its direct control over the government.
The latest shuffle in government leadership will help make China’s monetary and fiscal policies more consistent, said Bruce Pang of JLL. He expects the new team to help create a “more growth-friendly attitude.”