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Li Keqiang Holds Telephone Talks with IMF Managing Director Christine Lagarde at Request

On the morning of January 28, 2016, Premier Li Keqiang held telephone talks with Managing Director of the International Monetary Fund (IMF) Christine Lagarde at request, exchanging in-depth views on economic and financial situation in China and the world at large.

Li Keqiang expressed that the global economy is now under deep adjustment with intricate features, insufficient recovering momentum and increasing uncertainties, therefore an international consensus has been reached to promote growth, adjust structure and enhance cooperation. China's economy has deeply integrated with that of the world. Under the background of a slow growth in the global economy and trade and heightened volatility in the global financial market, last year, China maintained a medium-high speed economic growth of 6.9 percent and witnessed an even higher growth in its resident income and savings, fairly sufficient employment and constantly improved environment, all of which were hard-earned.

Li Keqiang pointed out that the key to China's development is reform. Facing downward economic pressure in the world and deep-rooted contradictions in China, we have cemented our confidence and looked squarely at the difficulties, and will take comprehensive measures to well utilize huge potential, tenacity and maneuvering space of China's economy. While properly expanding aggregate demand, We will focus on structural reform, particularly on its supply side. Besides, we will continue implementing a proactive fiscal policy and a steady monetary policy, deepen the innovation-driven development strategy and push mass entrepreneurship and mass innovation so as to bring out people's enthusiasm and creativity, keep fostering new development impetus and transform and improve traditional impetus. We are capable of maintaining a sustained and steady development of China's economy.

When talking about the RMB exchange rate, Li Keqiang stressed that the Chinese government has no intention to stimulate export by currency devaluation, still less will it launch a trade war. In fact, the current RMB exchange rate has ensured basic stability of a basket of currencies with no foundation for constant devaluation. We will uphold the principle of independence, gradualness and controllability to steadily reform the forming mechanism of the RMB exchange rate, enhance communication with the market and keep basic stability of the RMB exchange rate at a reasonable and balanced level.

Li Keqiang appreciated IMF's positive efforts in promoting global growth and maintaining financial stability over the years, and expressed that the Chinese government will boost communication with such international institutions as the IMF on economic development and macro-policy, and work with other countries and relevant parties to release a positive signal for global economic recovery and growth and thus shore up market confidence.

Christine Lagarde expressed her belief that the Chinese government is able to maintain stable growth of China's economy through effective measures like implementing macro-policies, advancing structural reform, keeping a stable exchange rate policy and intensifying communication with the market. The IMF will continue beefing up its communication and cooperation with China in a joint effort to show the market their determination of reform and confidence in growth.

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