TIANJIN, China — China’s Premier Li Qiang said on Wednesday he was confident the world’s No.2 economy could maintain a “relatively rapid” growth rate as it transitions from a manufacturing-led model to a consumer-driven one, a shift analysts say is key to securing its future.
Li’s keynote speech, delivered at a World Economic Forum meeting in Tianjin, comes as Chinese officials seek to cushion the economic damage caused by the trade war with the United States through policy support – a particularly daunting challenge for authorities grappling with the pressing need to undertake painful structural reforms.
Most analysts believe China’s $19 trillion economy faces two broad paths: it can sustain relatively high, albeit slowing, growth driven by strong exports – a trend likely to fade as trade tensions with the West escalate – or it can endure several years of slower growth while implementing reforms aimed at unlocking longer-term gains through its vast consumer market.
But China’s second-ranking official told delegates he was optimistic that Beijing could pull off both.
