Premier Li Keqiang Meets the Press.docx
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PremierLiKeqiangMeetsthePress
PremierLiKeqiangMeetsthePress
TheThirdSessionofthe12thNationalPeople’sCongressheldapressconferenceattheGreatHallofthePeopleonthemorningof15thMarch2015.PremierLiKeqiangoftheStateCouncilmetwithChineseandforeignpressandansweredquestionsatinvitationofspokeswomanoftheNPCsessionFuYing.
Atthestartofthepressconference,PremierLiKeqiangsaid:
Friendsfromthepress,ladiesandgentlemen,youhavemadetremendouseffortstocovertheNPCandCPPCCsessions.Thetwosessionshavecometoaclose,butyourworkhasnot.TodayisSundayyetyoucannottakethedayoff.Iwanttousethisopportunitytoexpressmysincereappreciationtoyouall.NowIwouldbehappytoansweryourquestions.
FinancialTimes:
Lastyear,China’srealestatemarkethasbeenindecline.ThishaspromptedalargenumberofChinesetostartbuyinghomesoverseas.Currently,Chinesecustomershavebecomethelargestgroupofhome-buyersinNewYork,SydneyandLondon.Andthishassignificantlydrivenuplocalhomeprices.Somepeoplehavecalledintoquestionthelegitimacyofthemoneyspentthere.Areyouconcernedaboutabacklashtosuchmassivehome-buyingbytheChineseoverseas?
AndwilltheChinesegovernmentintroducenewpolicymeasurestoboostthedomesticrealestatemarketthisyear?
LiKeqiang:
Chinaisworkingtowardsfullconvertibilityofrenminbiundercapitalaccounts.ThisshowsthatChinaistakingfurtherstepstoopenupitscapitalmarket.YoutalkedaboutthephenomenonofalargenumberofChinesebuyinghomesoverseasandsaidthattheyhavebecomethelargesthome-buyersinanumberofinternationalmetropolises.Isupposemoreevaluationneedstobedonehereastowhetherthatistrue.AndI’mnotinpossessionofsolidinformationaboutthis.ButwhatIknowisthatChinaisstillthelargestdestinationofforeigndirectinvestment.Andthenumberlastyearwas120billionUSdollars.Atthesametime,theChinesegovernmentwillcontinuetoencourageChinesecompaniesandnationalstomakeinvestmentanddobusinessoverseas.Andindoingso,theyneedtoabidebyChina’srelevantlawsandthelawsofhostcountries.
YouhaveaWesterner’sface,butyouspeakChinesesowell.IwonderifyouhaveboughthomeinChina.Youarewelcometodoso.Chinaisstillalargedevelopingcountry.Housingisnotjustaneconomicissue,butalsoonethatconcernspeople’slivelihood.TheChinesegovernmentneedstohelpthelow-incomepeopleresolvehousingdifficulty.Thegovernmentwilltakemorestepstorebuildurbanrundownareasanddilapidatedhomesinurbanandruralareas.Andtheplanthisyearisanadditionalonemillionunitseach.Itisthegovernment’sresponsibilitytomeetthepeople’sbasichousingneeds.
Therealestatemarketisgovernedbyitsownlaws.Chinaissuchalargecountry.Therearemegacities,medium-andsmall-sizedcitiesaswellassmalltownshipsinthisbigcountry.Conditionsofthesedifferentcitiesandtownshipsvarysignificantlyfromonetoanother.Hence,thecentralgovernmenthasrequiredthatlocalgovernmentsfulfilltheirresponsibilitytoexerciseappropriateregulationofrealestatemarkets.Differentiatedpolicieswillbeadoptedinthelightoflocalconditions.Atthesametime,urbanizationisstillpickingupspeedinChina.HencethehousingdemandinChinaisheretostay.WealsoencourageChinesepeopletobuyhomesforpersonaluseorimprovedlivingconditions.Wehopetoseesteadyandsoundgrowthoftherealestatemarketinthelongrun.
BeijingNews:
Mr.Premier,onmanyoccasions,youhaveexpressedyourstrongsupportfornewformsofbusiness,likee-commerceandexpressdeliveryservice.SoI’mverycurious.Haveyouevershoppedonline?
And,whatdidyoubuy?
Somepeopleareworriedthatonlineshoppingwilladverselyaffectphysicalstores.Whatisyourviewaboutthis?
LiKeqiang:
Isupposethateachandeveryoneofyouherehashadexperienceofshoppingonline.AndI’mnoexception.Yes,IhaveboughtthingsontheInternet.Actually,Iboughtafewbooksrecently.Asforwhatbooks,Idon’tthinkitwillbeagoodideaformetospellthemouthere.Noadvertisement.Havingsaidthat,Iwouldbehappytoadvertiseforthosenewformsofbusinesslikeonlineshopping,expressdeliveryservicesande-commerce,becausethesenewformsofbusinessgiveastrongboosttoemploymentandconsumption.Andpeopleseemtogetquiteexcitedwhentheyshoponline.
Iamawareoftheworrythatonlineshoppingwilladverselyaffectphysicalstores.Itwasonlynaturaltohavesuchworryatthebeginning.ButIrecallafieldtripthatIpaidtoalocalvillageinChina.It’savillagehometoabout800familieswhohaveopenedsome2,000shopsontheInternet.Onecanwellimaginehowvastthespaceforbusinessentrepreneurshipthereis.AndafterthatIwenttoaclose-byplacewherethere’salargenumberofphysicalstores.AndIaskedoneoftheshop-ownersthatifhewasconcernedaboutanyadverseeffectfromonlineshopping.Theownershowedmethathehasalsoopenedanonlineshopandevenuploadedavideoofhisphysicalshoponlinetoshowthatthestoreisrealandcompetitive.Suchsoundinteractionbetweenonlineandofflinehasonlyboostedthevitalityofmarket.
ToborrowapopularideaontheInternetthateveryonestandsachancetoflywhenthereisafavorablewindblowingfrombehind,Ibelievewiththetailwindsgeneratedbyour“Internet+”strategy,wewillbeabletogettheChineseeconomyofftoahigherlevel.
Today,March15th,isthedayforprotectingtherightsandinterestsofconsumers.Ihopeallstores,beitonlineoroffline,willdohonestbusiness,putqualityofproductsbeforeeverythingelseandprotecttherightsandinterestsofallconsumers.
BloombergNews:
Youoncesaidthatthegovernmentneedstoshowutmostdeterminationinreformingitselfandthisprocesscouldbeaquitepainfulone.AstheChineseeconomycomesunderincreaseddownwardpressure,doyoustillhaveasfirmdeterminationasbeforetocarryoutthisreform,andwilltheChineseeconomycontinuetoslide?
Ismorepaintocomeinthefuture?
LiKeqiang:
Youaskedaboutthepaincausedbythegovernment’sself-imposedreformtostreamlineadministrationanddelegatepowers.Letmetellyouthatthepainisstillthere.Actuallythepainisbecomingmoreacuteandisbeingfeltinmoreplaces.Thisisareformtargetedatthegovernmentitself.Asthegovernmentshedsitsownpowers,vestedinterestswillbeupset.Thisisnotnail-clipping,buttakingknifetoone’sownflesh.Buthoweverpainfulitmaybe,wearedeterminedtokeepgoinguntilourjobisdone.
Thereformofstreamliningadministrationanddelegatinggovernmentpowershelpsusgettherelationshiprightbetweenthegovernmentandthemarket.Ithelpsboostmarketvitality,andputsusinastrongerpositiontocopewithdownwardpressuresoneconomicgrowth.Lastyear,inspiteofeconomicslowdown,wemanagedtoaddmoreurbanjobs.Muchisattributabletothisreform.
Wehavecompletedthefive-yeartaskofcancelinganddelegatingStateCouncilreviewitemsbyonethirdwithinjusttwoyears.Withthereformofthebusinesssystem,onaverage,upto10,000newbusinessesgetregisteredeachday,anincreaseof50%.Thisfullyshowsthatourpeoplerepresentsthelargestsourceofvitalityforeconomicgrowth,andthisreform,byreducingthepowersheldinthehandsofthegovernment,hasactuallyhelpedustotacklethedownwardpressuresoneconomicgrowth.
Wealsorecognizethatsomemeasureshaveyettobefullyimplemented,andnewproblemshavesurfaced.Acoupleofdaysago,Icameacrossaproposalduringthetwosessionswhichsaidthatalthoughgovernmentreviewitemshavebeenslashed,togetoneprojectapproved,whichneededupto100stampsfromdifferentgovernmentdepartments,stillrequiressome50to60stepsnowadays.Thelongprocedureshavedrivenupthecostofbusinessstart-upanddampenedpeople’senthusiasmformakinginnovations.Thatiswhythegovernmentmuststepupitseffortstostreamlineadministrationanddelegatemorepowers.
Newstepswillbetakenthisyearandourfocusisonthefollowingthreeareas.First,allnon-governmentalreviewitemswillbecanceled.Wemustensurethatgovernmentpowerwillnotbeexercisedwhenitisnotstipulatedbythelaw.Therearecurrentlyover1,200reviewitemsatthelocalgovernments’level,mandatedbythecentralgovernmentaldepartments.Ourgoalistocutthisnumberbyover200thisyear.Thegovernmentmustnotsecretlyholdontopowersthatshouldbedelegated,justlikereleasingthehandbrakebutstillkeepingthefootbrakeon.Second,allprovincial-levelgovernmentswillberequiredtoreleasetheirlistofpowersandlistofresponsibilitiesthisyear.Andthistaskwillbeassignedtogovernmentsincitiesandcity-levelcountiesnextyear.Wemustkeepourpeoplewell-informedofwhatpowerstheirgovernmentsholdandputgovernmentpowerunderpublicoversighttopreventtheabuseofoffice.Andthird,wewillexplorenewmodelsforstrengtheningongoingandex-postregulation.Wewillexpandthetrialsforintegratedlaw-enforcementandwewillestablisheffectivemodelsforexercisingregulationoversuchactsascheatingandswindlingofmarketplace,violatingintellectualpropertyrights,makingandsellingfakeandsubstandardgoods,andcasesinvolvingfoodsafety.
Justasshoesmustsuitthefeet,ouradministrationmustmeetpeople’sneedsanddeliverrealbenefits.
ChinaNationalRadio:
China’santi-corruptioncampaignin2014broughtdownseveral“bigtigers”orhigh-rankingcorruptofficials.Iwouldliketoknowwhatmorestepswillbetakentoenha