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China potential for domestic demand big as ever - Premier Li

Published 31/10/2015, 14:49
© Reuters. German Chancellor Angela Merkel and Chinese Premier Li Keqiang look on after a signing ceremony in Hefei

BEIJING (Reuters) - China's domestic demand potential is as huge as ever, despite slowing growth and a difficult economic transformation process, Premier Li Keqiang said, according to a statement on the Chinese foreign ministry website on Saturday.

Li's comments were made on Friday in the eastern Chinese city of Hefei during a forum with German Chancellor Angela Merkel, the statement said.

"China is still one of the world's most attractive destinations for investment," Li said.

China's economy is on track to post its slowest growth in 25 years. However, official data shows monthly retail sales this year have continuously increased by over 10 percent, and sectors such as entertainment are expanding at a rapid clip.

In a separate meeting on Saturday, Li emphasised China must improve and innovate its approach towards macro-economic control, and aim to deliver "quality" growth, state news agency Xinhua said.

Reform of fiscal policy and mechanisms, as well as state-owned enterprises, should be deepened in an effort to restructure China's economy, Xinhua reported Li as saying, underscoring the roles of innovation and entrepreneurship.

© Reuters. German Chancellor Angela Merkel and Chinese Premier Li Keqiang look on after a signing ceremony in Hefei

He highlighted other areas for improvement such as ensuring both urban and rural areas benefit from economic progress, while international cooperation will also be opened up, said Xinhua.

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