Looking at the bigger picture

Despite pressure from economic downturn, the government will show greater tolerance unless it threatens to cross the bottom line

In a keynote speech delivered at the opening ceremony of the Forum for Asia Annual Conference 2014 on April 10, Premier Li Keqiang said China will not adopt short-term stimulus policies to address what are temporary economic fluctuations; instead it will focus on the sustainable and healthy development of the economy in the middle and long run.

China is in a critical period of economic structural adjustments. Its previous economic growth model driven by the expansion of investment has run out of steam and its economic engine has shifted to domestic demand. However, due to the lack of innovative domestic products domestic demand has failed to play its expected role as an engine of growth. The direct result of this was China's economic growth stayed at a comparatively low level in 2013. The full-year 7.7 percent growth in gross domestic product was the lowest in 14 years, while the GDP growth in the first quarter of this year was below 7.5 percent. It was in the face of these adverse economic circumstances that the State Council meeting held on April 2 once again urged the adoption of feasible measures to stabilize the country's economic growth.