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New administration, new thinking on economy

chinadaily.com.cn | Updated: 2013-05-20 19:15

Premier Li Keqiang said at a State Council meeting that there was no longer much space left for economic stimulus. That symbolizes the thinking of the new administration, says an article in The Economic Observer (excerpts below).

One month after the release of economic data for the first quarter of 2013, international investment banks have twice lowered their expectations of China's growth.

Doubtlessly, they have realized the new administration's thinking.

Stimulus measures can have some adverse consequences, not least inflation. The new administration is trying to find a way out of the puzzle. Premier Li Keqiang repeatedly claimed that his administration would rely more on market mechanisms for a healthier economy. For that purpose they are encouraging civil investments, breaking down State monopolies, and lessening, even ending, government interference in some economic areas.

These measures have made their point.

The new administration has removed 133 government approval procedures in two months. This will speed up the economy. We hope the new thinking will continue and further propel the economy.

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