China’s Li Pledges Policy Tweaks as Necessary Amid Growth Risks

(Bloomberg) -- Chinese Premier Li Keqiang said the country’s economy is facing increasing downward pressure despite some better-than-expected data in the first half of the year, and the government will adjust policies when appropriate.

There are “plenty of factors, difficulties and challenges impacting China’s economy,” as global growth weakens, trade and investment slows and protectionism rises, Li said at a meeting with economists and business leaders Monday, according to a statement released Tuesday.

The government will continue prudent monetary policy and proactive fiscal policy while making good use of counter-cyclical tools, Li said at the meeting. He also reiterated earlier commitments to make sure taxes will be cut as planned, improve monetary policy transmission, work to lower borrowing costs for smaller businesses and lift effective investment.

Economists including George Wu and business leaders from Meituan Dianping, XCMG Construction Machinery Co. and Zhejiang Tailong Commercial Bank were among those at the meeting.

To contact Bloomberg News staff for this story: Yinan Zhao in Beijing at yzhao300@bloomberg.net

To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Gregory Turk

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