|Li Keqiang Holds a Dialogue with Representatives of Various Circles Attending the Annual Meeting of the New Champions 2019|
On the afternoon of July 2, 2019, Premier Li Keqiang held a dialogue with representatives from communities such as industry and commerce, finance, think tanks and media outlets attending the Annual Meeting of the New Champions 2019 in Dalian.
Li Keqiang answered questions put forward by the attendees, ranging from China's business environment, adjustment of industrial chains, enterprises and innovation, opening up of the financial sector, to development of private businesses. The dialogue session was chaired by Founder and Executive Chairman of the World Economic Forum Klaus Schwab, with an attendance of more than 200 global representatives from all circles.
As for business environment, Li Keqiang expressed that China stays committed to building a market-oriented, internationalized business environment based on rule of law and with greater stability, transparency and predictability. The Foreign Investment Law was passed in March. We will implement the management system of pre-establishment national treatment plus a negative list for foreign investment. The negative list will be shortened in the future. Moreover, we will, in line with the policy of "entry unless on the list", open up further. We will place greater importance on protecting the legitimate rights of foreign investments and strengthen protection of intellectual property rights. Enterprises registered in China, both Chinese and foreign-invested, will be treated equally.
Regarding the adjustment of industrial chains, Li Keqiang noted that global industrial chains with continuous improvement on a stable basis have taken shape in economic globalization. It is a natural outcome of the comparative strengths of various countries and the international division of labor. We are seeing the mutually interlinked and integrated global industrial chains, and their adjustment matches the law of industrial development. Against the backdrop of worldwide investment downturn, China saw a steady inflow of foreign investment in the first five months of this year, with the investment in the manufacturing industry up more than 8 percent year on year. This is credited to China's globalized industrial system and a vast market with huge potential. It is believed that as long as we follow market principles and business rules, China will boast great competitiveness in the global industrial chains. We will step up efforts to expand opening up, support fair competition and make greater efforts to safeguard foreign investors' rights and interests.
Speaking of opening up of the financial sector, Li Keqiang said that China has continued to make new steps in opening its financial sector in recent years, and China's efforts in expanding opening up in the financial sector help improve and upgrade the sector. In the mean time, the Chinese government has also kept enhancing impartial regulation on the financial sector to protect the interests of domestic and overseas investors and consumers. Although facing downward economic pressures, China has strived to maintain financial stability, without excessive money supply. China has maintained stability of its monetary policy, with timely and pre-emptive fine-tuning, and kept the RMB exchange rate basically stable at a reasonable and balanced level. We should not only ensure that licensed financial institutions are well managed, but also strengthen supervision of unlicensed business operations. China's financial industry will open up wider and the financial sector will be better regulated.
When talking about the development of private businesses, Li Keqiang pointed out that private businesses contribute to more than 80 percent of the country's urban jobs and 60 percent of the country's gross domestic product, serving as the important pillar for the growth of China's economy. Taking account of their difficulties, we have introduced general-benefit tax cut at the beginning of the year and the tax on medium and small-sized enterprises was thus reduced by around 200 billion RMB yuan. In May this year, we took a series of steps to reduce taxes and fees, which would reduce taxes on businesses by more than 1.7 trillion RMB yuan for the whole year and benefit a great many medium and small-sized enterprises. We will work to ensure implementation of tax reduction policies to lower financing costs and make sure enterprises benefit from these policies.
The representatives responded enthusiastically. They spoke positively of the positive signal released in Premier Li Keqiang's speech at the Opening Ceremony of the Annual Meeting and the dialogue, highly praised China's measures to further deepen reform and expand opening up and believed that this will inject more confidence into the development of economy of China and the world in the future. All parties expressed their willingness to expand cooperation in economy and trade investment in China, promote the partnership featuring mutual benefit and win-win results and share development opportunities together.
Xiao Jie attended the above activity.