Chinese 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.
Li made the comments during a speech in London’s financial district on the final day of a visit which has yielded trade and investment deals worth 14 billion pounds ($23.76 billion) and strengthened Britain’s bid to become the dominant center for the Western trade in offshore yuan.
Li said he expected China’s economy, the world’s second-largest behind the United States, to grow at a minimum clip of 7.5 percent, confounding critics, including the International Monetary Fund (IMF), who say the country’s rapid growth may eventually falter.
“There have been some discussions saying that the Chinese economy is slowing down, they are worried whether the Chinese economy will head to a hard landing. Here I will be very frank and I will also make this point very solemnly: this will not happen,” Li said through a translator.
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, Zhou said he was confident that steady growth and financial stability would ensure market confidence in China’s currency, the yuan, officially known as the renminbi (RMB).