Chinese Prime Minister Li Keqiang said on Wednesday that the world economy faces “many uncertainties and destabilizing factors” in its fight against the Covid-19 pandemic, furthermore, he insisted that Beijing is committed in its relationship with Great Britain despite of recent tensions.
In a webinar co-sponsored by the China Chamber of Commerce in the UK, Li stated that Beijing will “maintain continuity, coherence and predictability” of its macroeconomic policies and “execute them reflectively and selectively, to maintain key indicators. economic in a suitable range ”.
China registered a growth of the Gross Domestic Product (GDP) of 2.3% in 2020, despite the sharp fall it registered in the first quarter due to the coronavirus, becoming the only economy that avoided a contraction last year.
This is a “really difficult result to achieve” and there are still “major challenges” posed by the pandemic, Li said in a video message.
“Thanks to tireless efforts, China’s economic fundamentals will be stronger,” he added.
The conflict over Huawei
On the other hand, Sino-British relations have soured in the past year after Britain ordered equipment from Chinese telecoms giant Huawei Technologies to be completely removed from its 5G network by 2027, and offered to residents of Hong Kong the possibility of becoming British citizens.
This came after Beijing’s introduction of a national security law in the former British colony.
However, Li described Britain as an “important cooperation partner in Europe for China”, saying that countries are better placed than in the past to overcome difficulties and obstacles.
Regardless of developments in regional and international events, China’s commitment to the United Kingdom remains as strong as ever, ”Li said.
“We will continue to strengthen cooperation and put China-UK relations on a firmer footing,” he said.
Liquidity is maintained
The People’s Bank of China (PBOC) will maintain reasonably ample liquidity, and support for the economic recovery in 2021 will continue without resorting to a huge stimulus, Sun Guofeng, head of the monetary policy department, wrote in China Finance, a magazine. led by the PBOC.
Interest rates will be kept at an adequate level, while liquidity will be managed using tools such as the mandatory reserve ratio, on-lending and open market operations, according to Sun Guofeng.
“In 2021, the situation at home and abroad remains very complex, and monetary policy faces many challenges,” Sun wrote. The official added that the policy will remain flexible, adjusting the intensity, pace and focus according to the needs of the economy.
China’s short-term interest rates fell to a two-week lows on Tuesday as signs of liquidity stress in interbank money markets began to fade, traders said.
Short-term financing costs began to rise last week as the central bank refrained from conducting its usual liquidity injections to meet high demand for cash ahead of the New Year’s holiday week, which begins on 11 May. February.
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