Vice-Premier Liu He addresses the World Economic Forum (WEF), in Davos, Switzerland, Jan 17, 2023. (PHOTO / WORLD ECONOMIC FORUM)
DAVOS, Switzerland – The Chinese economy will see a significant improvement this year, and its growth will most likely return to its normal trend, Chinese Vice-Premier Liu He said Tuesday at the World Economic Forum Annual Meeting 2023.
Over the past 10 years, China's gross domestic product grew from 54 trillion to 121 trillion yuan; average life expectancy rose from 74.8 to 78.2 years; and contribution to global growth reached around 36 percent, Liu said, underlining that there are five things that China always bears in mind in making such achievements.
China opposes unilateralism and protectionism, and looks forward to strengthening comprehensive international cooperation with all countries, Liu said
First, China must always take economic development as the primary and central task.
Second, China must always make establishing a socialist market economy the direction of its reform.
Third, China must always promote all-round opening-up.
Fourth, China must always uphold the rule of law.
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Fifth, China must pursue innovation-driven development.
The above five points are the important experience China has learned and gained since it started its reform and opening-up, Liu said, pledging that his country will stick to them and never waver in its commitment.
Stable financial system
He said China has managed to maintain overall financial stability and is drafting the Financial Stability Law.
To tackle the risks in the real estate sector, China has been committed to stabilizing expectations, providing reasonable liquidity, relaxing restrictions that were once introduced to address the overheating in the property market among others, Liu said.
Thanks to these efforts, the supply and demand in the market has seen noticeable improvement, he added.
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Looking ahead, China's urbanization is still on a fast track, and the enormous potential demand generated in this process will provide a strong underpinning for the development of the real estate sector, Liu said.
Moreover, the vice-premier said China is drafting the Financial Stability Law, which is expected to provide legal safeguards for defusing risks and maintaining financial stability as the country goes forward.
Opposing unilateralism
Liu also said that China's national reality indicates that opening up to the world is a must, and the country must open up wider and make it work better.
China opposes unilateralism and protectionism, and looks forward to strengthening comprehensive international cooperation with all countries, Liu said.
He called for upholding the right principles and maintain the effective international economic order, strengthening international macro policy coordination and striking a good balance between inflation and growth, and urged a global response to climate change.
Entrepreneurship
Entrepreneurship is a key factor for wealth creation of a society, and therefore, entrepreneurs, both Chinese and foreign, will play an important role as the engine driving China's historical pursuit of common prosperity, Liu said.
If wealth doesn't grow, common prosperity will become a river without source or a tree without roots, he said.
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Common prosperity is aimed at preventing polarization, Liu said, adding that it can only be attained through common development and the hard work of every Chinese.
Common prosperity is by no means a synonym of egalitarianism or welfarism, Liu said.
As China grows, all Chinese people will be better off, but that doesn't mean their incomes and level of prosperity have to be the same, he said, adding that there will be equal opportunities, but no guarantee of equal outcomes.