New growth drivers break new ground for Chinese economy: Premier Li

TIANJIN - China has become a new fertile land for global entrepreneurs and innovation, with new growth drivers breaking new ground for the country's economic development, Chinese Premier Li Keqiang said Wednesday at the opening plenary of the Summer Davos.

China will stick to market-oriented reform of the exchange rate formation mechanism and won't pursue competitive devaluation of its currency, Li said. "China will create conditions for a stable exchange rate".

The yuan exchange rate has shown signs of fluctuations recently, raising concerns that China is devaluing the currency on purpose.

"It is not true, as one-way devaluation of the yuan will bring China more drawbacks than benefits," Li said. "China's economic fundamentals are solid, with a sound balance of international payments and sufficient foreign exchange reserves. The yuan exchange rate therefore is fully capable of remaining basically stable at a reasonable and balanced level."

China will further reduce the tariff duties on some imports, making the country's overall tariffs continue to fall, and gradually remove the unreasonable charges on imports, Li said.

"It is the independent decision of China to open up its economy to promote domestic industrial transformation and upgrading, and to bring more options for domestic consumers," Li said.

"It is also a practical action taken by China to advance economic globalization. China's economy has been growing and thriving through opening-up."

This year, the country has drastically eased control on market access to the service industry, especially the financial industry, and relevant measures are being swiftly implemented.

"Apart from drugs and some daily consumer goods whose tariff duties have already been lowered, some other imports will also be subject to lower tariff duties," he said.

Premier Li also said China will adopt a stricter protection system on intellectual property rights (IPRs).

Li said that protecting IPRs means protecting and stimulating innovation. China cannot achieve innovative development without an environment that respects knowledge and protects property rights.