Balancing the economy
Premier Li Keqiang said on Tuesday that the nation will pursue a balance between economic stabilization and restructuring despite the ample cards available to bolster the economy. Such confidence-building talk shows that policymakers are keeping their stimulus powder dry and further reforms still high on their agenda.
At a time when the economy is experiencing a gradual slowdown and the vacillating financial market and corporate sector are concerned about the economic prospects in the second half of this year, Li's comments offer much-needed reassurance.
Although figures such as retail sales and industrial output offer some relief, as they remain at relatively high levels, the low growth figure for the second quarter - which dropped to 7.5 percent - has nevertheless reinforced concerns that the Chinese economy is encountering serious difficulties. And the situation could get worse if the government's non-stimulus stance remains rigid.
