Chinese Premier Li Keqiang speaks in a video message to the G20 Finance Ministers and Central Bank Governors Meeting that opened in Shanghai, east China, Feb. 26, 2016. (Xinhua/Rao Aimin)
Chinese policymakers on Friday sketched out the country's economic policies and reform agenda, reassuring the world that the government has plenty policy tools to combat downward pressure as financial leaders from G20 nations gathered in Shanghai.
In a video message to the G20 Finance Ministers and Central Bank Governors Meeting, Chinese Premier Li Keqiang reiterated that China has the confidence to handle the complex economic situation at home and abroad.
"The Chinese economy has great potential, resilience and flexibility, and we will capitalize on such strengths," he said.
Friday's gathering came amid weak economic growth worldwide and increasing volatility in the financial markets. The IMF earlier this week highlighted increasing risks to global recovery and called for urgent and bold action to support growth.
In January, the fund predicted growth of 3.4 percent for the world economy this year but may downgrade the figure when it publishes its next forecast in April.
Li called for G20 nations to stand together during the difficulties. "When formulating macroeconomic policy, G20 members need to keep in mind not just their own growth, but should also watch for the spillover effects of their policies," he said.
Continued turbulence in the stock market and yuan depreciation at the start of 2016 did little to disguise what could be a very difficult year ahead, putting the country's economic policies and reform agenda in spotlight at Friday's meeting.
MONETARY POLICY: PRUDENT, WITH EASING BIAS
At a press briefing ahead of the G20 meeting, China's central bank described its monetary policies as "prudent with a slight easing bias".
The shift of official tone, which had been characterized as "prudent" for the past few years, brings language on the policy stance into line with reality, Bloomberg economist Tom Orlik wrote in a research note.
To arrest the cooling of the economy, which logged its lowest annual expansion in a quarter of a century at 6.9 percent in 2015, China has cut benchmark interest rates and the reserve requirement ratio of banks several times since 2014.
For possible downside risks, China still has the space and tools for monetary easing, central bank governor Zhou Xiaochuan said. He also stressed that China will not "overly" base its macroeconomic polices on exterior economic performance or capital flows.
