On April 16, Premier Li Keqiang chaired a State Council executive meeting to analyze the first-quarter economic situation, deploy and implement the key tasks for deepening economic system reform in 2014, and determine measures for financial services supporting agriculture, rural areas and farmers, and decided to extend and improve tax policies that support and promote employment. On the day of the meeting, the National Bureau of Statistics officially released the economic data for the first quarter of 2014. Li Keqiang stressed that the government must currently take "stabilizing growth" as an important task, and must both "maintain resolve" by adhering to a proactive fiscal policy and a prudent monetary policy unchanged, and "take proactive action" by promoting reform, adjusting the structure, and benefiting the people, and through the joint efforts of many parties, ensure the completion of the expected targets and tasks for economic and social development for the whole year.

 

　　Economic performance remains within a "reasonable range"

 

　　After Xu Shaoshi, director of the National Development and Reform Commission, reported on the first-quarter economic situation and the key tasks for deepening economic system reform in 2014, many ministry officials actively offered suggestions, and then the vice premiers and some state councilors also expressed opinions and suggestions. In his summary, Li Keqiang stressed the need to judge the current economic trend comprehensively and objectively. He said that the first-quarter data showed that China's economic performance this year had a generally stable start, with major economic indicators such as the economic growth rate, employment, and prices within the annual expected target range, and the economy continuing to remain in a reasonable range. "I have said repeatedly that the reasonable range means the economic growth rate is not lower than about 7.5 percent; 'about' means a little higher or a little lower is normal and all within the reasonable range." He cited statistical data to explain specifically: the surveyed unemployment rate continued to decline steadily in the first quarter; the growth rate of the service sector continued to be higher than that of the secondary sector, with development accelerating; and urban and rural residents' incomes grew relatively quickly. "These are all positive changes in the economic structure," Li Keqiang said.

 

　　There is currently no consideration of expanding the deficit or adopting "strong stimulus"

 

　　Li Keqiang also pointed out that downward pressure on economic growth still exists, and some difficulties must not be ignored. He explicitly required giving the market stable expectations, "coordinating efforts to stabilize growth, adhering to promoting reform, adjusting the structure, and benefiting the people, and actively preventing and defusing risks." He said: "Development remains China's top priority. Whether from a current or long-term perspective, keeping the economy running steadily within a reasonable range must become an important task of the government." Li Keqiang stressed that stabilizing growth must "stabilize the present while benefiting the long term." How to stabilize growth? According to the situation, "maintain resolve." "At present, the proactive fiscal policy and prudent monetary policy will not change, and there is no consideration of expanding the deficit or adopting 'strong stimulus.'" He said, "But the government is not 'doing nothing'; rather, it must rely on promoting reform, adjusting the structure, and benefiting the people, focus on increasing effective supply, continuously meet new demand, pay attention to preventing and defusing potential risks, and through the joint efforts of many parties, ensure the completion of the expected targets and tasks for economic and social development for the whole year."

 

　　The next step is still to make "streamlining administration and delegating power" a priority of government work

 

　　A week earlier, Li Keqiang visited the Haikou Administration for Industry and Commerce in Hainan Province. Staff told him that after the implementation of reform of the enterprise registration and management system, the number of newly registered enterprises in Hainan in the first quarter of this year increased by 77 percent, showing "blowout growth." Li Keqiang mentioned this figure again at the State Council executive meeting. He said: "I originally thought that the reform of streamlining administration and delegating power would take a long time to show results, but now it appears that the reform has already achieved obvious results. The reform has driven the growth in the number of new enterprises and also greatly driven employment." In fact, during the meeting's discussion, he had asked relevant departments to make project approval procedures "simpler." He stressed that the next step is still to make "streamlining administration and delegating power" a priority of government work, establish a government power list system, explore implementation of a negative list management model, and improve interim and post-event supervision. At the same time, it is necessary to further advance reforms such as making fiscal budgets public in the fiscal and taxation field, revitalize idle funds, and facilitate public oversight. "These are all measures to increase economic vitality through reform," Li Keqiang said.

 

　　We must be good at applying the principles of commercial operation to meet the livelihood expectations that the people eagerly await

 

　　Li Keqiang put forward requirements for adjusting the structure and benefiting the people in the next stage. He said that "adjusting the structure" requires both support and restraint. On the one hand, it is necessary to eliminate outdated production capacity with high pollution and high energy consumption; on the other hand, industries that help narrow the gap between urban and rural areas and between regions and are conducive to balanced industrial development should be vigorously encouraged. He particularly proposed that the service sector is an important measure for "adjusting the structure" and was also a "weak spot" in past economic development. He required all departments to "take real measures" and effectively drive sustained growth of the service sector. Li Keqiang also used livelihood projects such as shantytown redevelopment and renovation of water supply networks as examples to explain that "benefiting the people is an important driving force for promoting development." He said that the people have many livelihood expectations they eagerly await, and the government should increase support and be good at applying commercial principles to advance them. This can both improve people's lives and drive sustained and healthy economic development.

 

　　Development is the key foundation for solving all of China's problems

 

　　Li Keqiang reiterated that it must be kept firmly in mind that China is still a developing country and is still in the primary stage of socialism; development is the top priority and also the key foundation for solving all of China's problems. He said: "Sixty percent of our people live in the central and western regions and the northeast, and their annual income has just reached 5,000 U.S. dollars. We need development to improve their lives." Li Keqiang finally stressed that China currently has many problems to deal with and must maintain resolve, work hard with high aspirations, dare to take responsibility, and truly work hard to implement all tasks set by the Government Work Report.