China’s new prime minister economic forecast, growth

China’s new Premier Li Qiang said on Monday that policymakers would focus on the quality of growth. While he said China’s target of around 5% growth will not be easy, policymakers are committed to growth, he added.

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BEIJING – China’s new Premier Li Qiang said Monday that policymakers will focus on the quality of growth, particularly the needs of ordinary people for housing, income, education and health care.

His comments showed how Beijing is still focusing on priorities other than growth itself.

Li said China’s focus is shifting to so-called high-quality development, such as building technology and so-called green industries.

From a macro policy perspective, he said leaders will focus on sustainability, increasing domestic and foreign demand, technological innovation and risk diversification.

According to him, achieving China’s growth target of around 5% will not be easy. But he said politicians would push for growth and said non-state enterprises would have ample opportunity to grow.

The Cabinet of Ministers has changed in China

Li was named China’s new prime minister on Sunday in a much-anticipated move. He is a popular representative of Chinese President Xi Jinping and has never served as deputy prime minister — his appointment is unprecedented.

On Friday, Xi secured an unprecedented third term as president, further consolidating his power.

Xi had been expected to retain his role during this month’s so-called “Two Sessions” parliamentary session. The annual meeting marks the meetings of the advisory group and the legislative body, the National People’s Congress.

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In other leadership changes announced over the weekend, He Ling was among four people named vice premier. He previously headed the National Development and Reform Commission, China’s economic planning agency.

Several ministers retained their duties. According to state media, Yi Gang will remain the head of the People’s Bank of China, Liu Kun the head of the Ministry of Finance and Wang Wentao the Minister of Commerce.

China’s new Prime Minister Li Qiang, on the right, is the popular representative of Chinese President Xi Jinping, pictured on the left.

Lintao Zhang | Getty Images News | Getty Images

Beijing has yet to announce who will lead the newly created National Financial Regulatory Authority, which will replace and expand the role of the China Securities Regulatory Commission and the China Banking and Insurance Regulatory Commission.

The administration is ready to control most of the financial sector, with the exception of the securities sector.

Beijing has created a new financial administration as part of the restructuring of the State Council, the top executive body of the Chinese government. As Prime Minister, Li Qiang heads the State Council.

The restructuring is expected to significantly strengthen China’s ruling Communist Party’s direct control over the government.

Recent changes in government leadership will help make China’s monetary and fiscal policies more consistent, said JLL’s Bruce Pang. He expects the new team to help establish a “growth-friendly posture.”

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