The Boao Forum, held every April after the end of China's annual legislative meetings, offers yet another window into the country's policy directions.

In his opening speech on April 11, Premier Li Keqiang ruled out using stimulus measures to counter economic fluctuations, saying healthy, long-term development was more important for the country.

This was the second time he has made the point.

At the close of the National People's Congress session in March, he told reporters he was satisfied that the government had refrained from using stimulus measures to meet growth targets in 2013.

We believe its decision is based on an accurate assessment of China's development needs and current fragility. Despite years of talk about the need for economic restructuring, it has continued to rely on an unsustainable, investment-led model of growth.

Besides, 2014 is not 2008, when the government rolled out the 4 trillion yuan ($640 billion) stimulus package. Today, the country's basic infrastructure has improved, particularly in the more developed regions.

Moreover, both the money supply and the financial sector have grown hugely, limiting the range of fiscal and monetary tools; a wrong move could spark a crisis of inflation and bad debts.

Based on a commentary published on caixin.com.

caixin.com