No hard landing for China

19-06-2014

Li Keqiang (R) and George Osborne
Zhou Xiaochuan. Photos: Reuters
Premier Li Keqiang said on Wednesday that China's economy would not suffer a hard landing and would continue to grow at a medium to high pace in the long term without strong stimulus.

Mr Li made the comments during a speech in London's financial district on the final day of his visit which has yielded trade and investment deals worth 14 billion pounds and strengthened Britain's bid to become the dominant centre for the Western trade in offshore yuan.

Mr Li said he expected China's economy, the world's second-largest behind the US, to grow at least 7.5 percent confounding critics, including the International Monetary Fund, who said the country's rapid growth may eventually falter. Mr Li said this will not happen.

Mr Li's comments were echoed by People's Bank of China Governor Zhou Xiaochuan. At an event later in London on cooperation in foreign exchange markets, Mr Zhou said he was confident that steady growth and financial stability would ensure market confidence in China's currency, the yuan.

Speaking at the same event, British Finance Minister, George Osborne, compared the growing importance of China's currency to the emergence of the dollar as the world's reserve currency, saying the yuan's growth would be one of the major changes in global finance over the coming decades.


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