China ‘needs foreign businesses in economic transition’

Source:Agencies-Global Times Published: 2016/6/28 23:03:01

China will expand market access for foreign investment to help drive industrial upgrades and its economic transition, Premier Li Keqiang said on Tuesday.

"The participation of foreign firms is needed in China's efforts to push its economic transition and upgrading through reform and innovation to realize sustainable healthy growth," Li said during a session with business executives at a meeting of the Summer Davos in North's China Tianjin.

Foreign technology and managerial expertise will help Chinese firms and the country's industrial upgrading, Li said.

The premier promised to further ease market access for foreign investment to build an environment for fair competition. "China has the biggest potential for investment and should become the world's most appealing destination for investment."

The development of new business models in China will help with reemployment of steel workers and coal miners made redundant in the country's trimming of overcapacity in those sectors, according to Li.

"The new economy and new business models are creating more jobs than we expected," said Li.

The Chinese government has been encouraging business start-ups, especially in technology, and welcomed the development of the sharing economy.

There is also a drive to promote tourism in rural areas.

China is aiming to cut 100 million to 150 million tons of steel capacity and 800 million tons of coal capacity in the next few years, Li said.

The central government has earmarked 100 billion yuan ($15 billion) to help laid-off workers. It has asked local governments to provide funding as well.

Li vowed to cut excess capacity in "a market-oriented and lawful" manner, instead of using administrative orders.

Britain's vote to leave the EU has sent jitters through global markets, but it is important to work together to strengthen confidence, prevent the spread of panic and maintain stability in capital markets, Li said.

China will prevent systemic and regional risks when developing its capital markets, noted Li.



Posted in: Economy

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