China'S Economic Indicators Are Getting Warmer, But Downward Pressure Is Still There.

Lou Jiwei: China's economic growth target must not exceed 7%

The two round of the seventh round of China US strategic and economic dialogue is taking place in Washington.

Lou Jiwei, China's finance minister, said on the spot that China's economic growth target should not exceed 7%, and the Fed's interest rate increase will not cause massive capital outflow in China.

Lou Jiwei made this statement in the media interview during the thematic meeting.

China's industrial growth and state-owned enterprises' profits have increased recently after the GDP's year-on-year growth rate dropped to 7% in recent years.

Warmer, but downward pressure still exists.

In response to the question of whether China's economic growth rate will drop to 7%, Lou Jiwei pointed out: "we must note that the Chinese government's goal is to run at around 7%, and not necessarily achieve more than 7%".

Whether it is strong, whether employment is good or whether prices are stable or not, "we have a lot of evaluation indicators, not just looking at growth".

He said that the Chinese government is consciously reducing risks, keeping the economy stable and healthy, and maintaining the main economic indicators in a reasonable range. At the same time, more measures should be taken to promote structural reform and ensure long-term sustained and sound development.

At present, Chinese officials are taking various measures to increase the potential growth rate and total factor productivity, including relaxing government control, abolition or decentralization of administrative examination and approval matters, perfecting the price mechanism, abolish the government pricing of the vast majority of drugs, liberating the prices of 50 commodities and services, such as telecommunication tariff, non-public medical institution services, promoting free flow of elements, and promoting the reform of fiscal and taxation systems.

Lou Jiwei pointed out that at present, the recovery process of the world economic situation is slow and the risk has not been eliminated. China and the United States need to strengthen cooperation in all aspects.

China hopes that the United States will increase its savings rate, pform more savings into investment, increase investment in infrastructure and innovation, and make greater contributions to the global economy.

Referring to whether the Fed will raise interest rates during the year, Lou Jiwei said that if the Federal Reserve increases interest rates during the year, it will cause capital outflow in developing countries.

But considering the larger economic aggregate in China,

More complete, and capital controls have not been fully liberalized. "Even if the Fed raises interest rates, China may have a small capital outflow, but the scale will not be large.