China’s new premier on economic prospects and growth

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

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

Li said China is focusing on what it calls high-quality development, such as building so-called “green” technologies and industries.

In terms of macroeconomic policy, he said leaders will focus on stability, domestic and foreign demand growth, technological innovation and risk diversification.

According to him, it will not be easy to achieve China’s growth target of 5 percent. But he said that politicians are looking for growth and there will be more room for development in non-state enterprises.

Li was named China’s new premier on Sunday in a long-awaited decision. He is a popular representative of Chinese President Xi Jinping and has never served as deputy prime minister – his appointment breaks precedent.

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

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

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

Several ministers retained their functions. 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.

Beijing has yet to announce who will lead the new 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 responsible for overseeing 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 comes as China’s ruling Communist Party is expected to significantly increase direct control over the government.

The latest change in government leadership will help unify China’s monetary and fiscal policies, said JLL’s Bruce Pang. He expects the new team to help create “an environment conducive to growth.”