Chinese premier stresses targeted controls

Chinese Premier Li Keqiang (3rd R) presides over a meeting with officials and business leaders from provinces including Hunan, Fujian, Shandong and Henan, in Changsha, capital of central China's Hunan Province, July 3, 2014. (Xinhua/Ma Zhancheng)

Chinese Premier Li Keqiang on Thursday demanded more attention to targeted controls while keeping the country's economic growth within a proper range.

Targeted controls aim to tackle problems in key sectors and weak links, relying more on market power and reforms, and are meant not only to stabilize economic growth, but also to adjust economic structure, Li said.

The latest targeted control was undertaken by the central bank on June 16 to cut the reserve requirement ratio by 0.5 percentage points for banks engaged in proportionate lending to the farming sector or small and micro-sized enterprises.

Li made the remarks while chairing a meeting in Changsha, capital of central China's Hunan Province, with officials and business leaders from provinces including Hunan, Fujian, Shandong and Henan.

Three aspects will be highlighted, Li said.

The first is to invigorate the market through lowering market access thresholds, streamlining administrative examinations and approvals, freeing enterprises and facilitating investment and trade, he said.

The second is to increase supply of public goods including renovation of shanty towns, railways in central and western regions, water conservation projects, energy and environmental projects, as well as medical services and services for the elderly, according to Li.

The third is to support the real economy and carry out measures to cut tax burdens for the agricultural sector, small businesses and the service sector, and fulfill targeted measures to cut the reserve requirement ratio, Li said.

The overall Chinese economy now runs stably within a proper range with expanding urban employment, smooth restructuring, an expanding service sector and growing innovation, according to Li.

The Chinese economy improved in the second quarter from the first quarter, indicating its "huge tenacity, huge potential and huge resilience," Li said. However, existing difficulties and problems should not be ignored, he said.

The Chinese economy grew 7.4 percent year on year in the first quarter, marking the weakest pace in 18 months. Data on the second quarter are due on July 16. The country is aiming for an annual growth rate of around 7.5 percent for 2014.