Path of reform instills confidence in economy

Chinese Premier Li Keqiang delivers a government work report during the opening meeting of the fourth session of the 12th National People's Congress at the Great Hall of the People in Beijing, capital of China, March 5, 2016. [Xinhua/Liu Weibing]

With difficulties looming and overseas rumors abounding on a hard-landing of the Chinese economy, Premier Li Keqiang needed to show and instill confidence in people on Saturday when he reported to the National People's Congress on government work.

He did.

Not because the premier said he was confident. A 6.9 percent annual growth of gross domestic product was not bad, showing decent growth within a "reasonable range", and the service sector for the first time made up more than half of the economy. And that was achieved under very challenging conditions.

Nor because he said, "there is no insurmountable obstacle", or that the government has sufficient "innovative means" and "policy reserves" to facilitate macro control.

But because he demonstrated poise on the government's part at a time of confusion and anxiety amid waves of challenges.

Li's report might sound a little too business-as-usual to those anxious for dramatic prescriptions. But that is in itself a sign of confidence. Confidence in the path taken. Confidence that things are under control.

The confidence appears to have derived from a clear sense of direction, which gives us enough reason to not worry as some pessimists think we should.

Of course we cannot afford to overlook where the economy actually stands. This year and the next five or so will be very tough and critical. Many pending questions about our economy, and society as a whole, will find answers in the next few years.

That is not just about whether or not we can accomplish the goal of building a moderately well-off society in an all-round manner by 2020. Or if we can stride over the "middle-income trap". Or if the current pains are just pangs before an economic "rebirth".

Li's confidence is China's confidence. Having progressed in what observers called "uncharted water" in almost 40 years of reform, China has earned experience and honed skills to cope with international tumults and iron out domestic resistances.

Just as the premier told the national lawmakers on Saturday, China's very source of confidence is its 1.3 billion people and the diversity and creativity of its society. This is also why, for 2016, the country has no need to lower its goal of growth.