Li rejects short-term boost to economy, HKEJ says

May 02, 2014 07:43
Premier Li Keqiang prefers long-term reform to quick fixes to achieve sustainable growth. Photo: AFP

Chinese Premier Li Keqiang has rejected short-term measures to stimulate the economy, saying these will create problems in the long term, the Hong Kong Econmomic Journal reported Friday.

Instead, the government will deepen financial reform, liberalize taxes and decentralize certain functions to ensure sustainable growth, Li wrote in Qiushi Journal, a bi-weekly magazine published by the Communist Party. 

The government plans to replace business tax with value-added tax by 2015 while pushing forward reform in resources and consumption taxes.

Also, it will ramp up development of free-trade zones.

Li pledged to loosen the threshold for small and medium-sized financial companies and rural finance, as well as establish a deposit insurance regime this year.

Meanwhile, Li will pay official visits to Ethiopia, Nigeria, Angola and Kenya on May 4-11 and attend the World Economic Forum on Africa in the Nigerian capital Abuja.

It will be Li's first Africa tour since he assumed office and comes after a historic visit by President Xi Jinping in March last year.

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