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China premier sees 'medium to high' growth despite headwinds

Published 10/10/2014, 16:16
© Reuters German Chancellor Merkel and China's Premier Li address news conference following talks in Berlin
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BERLIN (Reuters) - Chinese Premier Li Keqiang said on a visit to Germany on Friday that he was confident his country's economy would continue to grow at a "medium to high tempo", forecasting growth of about 7.5 percent this year despite turbulence in the world economy.

Li told a joint news conference in Berlin with German Chancellor Angela Merkel that the global economy was facing more uncertainty but said China still possessed "vast growth potential".

"We are confident that we can reach growth of about 7.5 percent this year," said Li. "I say roughly because the final rate could be a little higher or lower than the 7.5 percent goal."

Li was in Berlin for German-Chinese consultations, a bi-annual forum in which senior members of both governments meet to discuss cooperation on a range of issues, from trade and economic policy to foreign and security matters.

Before their news conference, a series of business deals were signed including an agreement for European planemaker Airbus (PA:AIR) to sell 70 A320 single-aisle jets to China's state purchasing agency, and a 25-year extension of carmaker Volkswagen's (DE:VOWG_p) joint venture with China's FAW.

In a 52-page document listing areas of cooperation between the world's top exporters, they urged a rapid conclusion to talks between the European Union and China on an investment pact, saying this could set the stage for a free trade deal in the longer term.

Merkel urged Li to ensure free access to Chinese markets for foreign firms and said she had underlined the need for greater freedom for the media, following the arrest last week of a Chinese woman working for a German paper.

Li, on his second visit to Germany as premier, said the Chinese economy had "a lot of room for manoeuvre."

© Reuters. German Chancellor Merkel and China's Premier Li address news conference following talks in Berlin

"We are confident the economy can continue to grow at a medium to high tempo," he said.

(Reporting by Andreas Rinke, Noah Barkin, Stephen Brown and Alexandra Hudson; Writing by Stephen Brown)

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