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Opinion / Op-Ed Contributors

Reshaping the world economy through reform, opening-up and cooperation

By Li Keqiang (China Daily) Updated: 2014-01-24 07:13

Editor's note: The following is a special message from Premier Li Keqiang to the current World Economic Forum Annual Meeting in Davos this year.

A new year marks a new beginning and brings new hope. The World Economic Forum is a barometer for observing the world economy and an important platform of global brainstorming. I believe that with both new positive signs and uncertainties in the world economy, the Forum will certainly pool wisdom, spread confidence and contribute advice.

China is the largest developing country in the world and a member of the G20, the Asia-Pacific Economic Cooperation (APEC) and other multilateral economic mechanisms. Its economic health and trends have a major impact on the world economy.

Currently, the Chinese economy, while maintaining stability, has taken a turn for the better, with notable achievements and improved performance. In 2013, China's gross domestic product (GDP) grew by 7.7 percent, which remains mid-to-high growth in the world. The rise of the consumer price index (CPI) was kept at 2.6 percent. Over 13 million new urban jobs were created, more than in any previous year, and per capita disposable income of urban residents and per capita net income of rural residents rose by 7 percent and 9.3 percent in real terms, respectively.

The Chinese economy, on the whole, has enjoyed good momentum of fairly fast growth, relatively stable price levels, expanding employment and income increase. China's economy has become more closely connected with the world economy and China's cooperation with the world is further widening. Last year, China's import, export and use of overseas investment all achieved considerable growth. Total imports approached $2 trillion. Overseas direct investment by Chinese enterprises exceeded $90 billion. Given the lingering international financial crisis, the unrecovered world economy and China's effort of economic restructuring and upgrading, such a "score report" is indeed a hard-won achievement, proving once again the resilience and vitality of the Chinese economy.

Yet there is something more important than those figures. Last year, despite the sluggish global economy, the once increasing downward pressure on the Chinese economy and some outside prediction that our economy might have a hard landing, we didn't resort to short-term stimulus policies such as increasing the deficit or monetary expansion. Instead, we took proactive steps to boost economic vitality, stabilize expectations and promote economic transformation. Our focus was to innovate the approach to macro-regulation and rise to the challenges.

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