BackChina’s Li Keqiang sees increasing uncertainties after Brexit vote
Premier Li Keqiang said that the impact on global financial markets has already showed up and measures are needed to ensure stability in the international economy
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Beijing: Uncertainties in the world economy have increased after the UK’s vote to leave the European Union (EU), China’s premier Li Keqiang said.
The impact on global financial markets has already showed up and measures are needed to ensure stability in the international economy, Li said on Monday at the World Economic Forum (WEF) in Tianjin. On China’s economy, he reiterated that the nation will be able to keep medium to high level growth and has space to apply proactive fiscal measures.
“China hopes to see a united, steady European Union as well as a stable and prosperous United Kingdom," Li said. “No country can depart from the world economy to promote development of itself. So we need to join forces."
The UK voted to quit the EU last week, sending shock waves around world markets. Responding to a surge in the dollar as investors rush to avoid risk, the fixing rate of the Chinese yuan tumbled the most since August on Monday, when the country changed the way the exchange rate is decided.
Li said China’s economy is operating in a stable way and the job market remains healthy. He reiterated that the government is capable of keeping the yuan at a reasonable, balanced level, and there’s no basis for long-term devaluation.
China has been grappling with the dual targets of underpinning economic growth to meet the government’s goal for an expansion of 6.5% or more while trying to keep a lid on swelling debts.
Li said it’s important to cut overcapacity in steel, coal and other industries that have surplus production. Such companies must take measures to make sure workers can be re-employed and local governments should help take care of those staff, he said. Bloomberg
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