Q: I am with The Straits Times. How the new normal developing model affects and benefits China? And what impact it will bring to the country and the world? What is your perspective in viewing the new normal model?
A: As Chinese economy has entered the phase of the new normal, this year we set the anticipated GDP rate approximately 7 percent. It is true that we have adjusted downward somewhat our GDP growth target, but it will by no means easy to meet this target. Because China's economic aggregate keeps expanding and now the size of Chinese economy is valued at about $10 trillion, so 7 percent increase in today China's economy is equivalent a total size of the economy of a medium-sized country.
We want further upgrade China's economy to a medium level of development and maintain China's economic at a medium speed. We want pursue a growth that has improved quality and performance, this will help to build a solid foundation for us to achieve modernization, it would also be China's contribution to global economic growth.
I sense some concerns in your question about China economic growth and when that journalist from Bloomberg asked me question there was also such worries about slowing economic growth in China.
I have said in many occasions under this new normal state, we need to ensure that China's economy operates within a proper range and if our growth speed can't hold to lower range of our range of economic operation and effect the employment situation and increase of people's income, we are prepared to step up our targeted macro-economic regulation to boost the current market confidence while at the same time maintaining continuing about macro-economic policies to meet long-term market expectations.
The good news is in the past a couple of years, we did not result to massive stimulus measures for economic growth that has made possible for us have fairly underroom to exercise macro-economic regulation and we still have the host of policy instruments at our disposal.
As a same time, I realized there is considerable downward pressure on China's growth and we still face multiple challenges, this requires the government must strike a proper balance between maintaining steady growth and making structural adjustment.
In weiqi, a kind of chess board game invented by Chinese one is to plans on the big site and get the key rule right, when it come to China's economy, we must meet both and maintain steady growth and making structural adjustment. This will be able to get a handle on big situation, this requires that we have a vision, persuasion and courage. With joint effort, we are able to maintain the long-term positive effect for the overall Chinese economy.
Q: I am with China Business News. Mr Premier, on many occasions you stressed the importance of the mass entrepreneurship and innovation regard as the new engine viewing China's economic growth.
There are also people who say that it is a personal decision to start a business and should be a market economy behavior. So why should the government spend so much time and energy on this?
A: I appreciate your intention of saving the government much time and energy. This is something the government must do, because mass entrepreneurship and innovation in itself is a major reform endeavor and this reform is also inspired by the experience we have gained from the past experiences.
More than 30 years ago it was the introduction of household contracts responsibility system that has brought into full play the initiative of the vast number of Chinese farmers, because our people could move freely across provinces and cities. Now tens of thousands of Chinese farmers have migrated into cities, which has created is the miracle of China's economic development.
Last year when the government pursued the reform of the business systems to streamline its administration, I recalled that I paid a visit to one of the local venues for business registration and I came across a woman who was already retired.
At that time, the government just replaced the paid-in-capital registration requirements. This has given much enthusiasm to those who wanted to start their own business. This woman is one: she told me that she wanted to register a wedding service company because she was well versed with the traditional ways of holding such wedding ceremonies.
She believed she had competitive edge in providing such services so she wanted to register a company under her name. I also paid several visits to these on venture cafes and makers' spaces, where I see that the young people there - they have brilliant ideas - and when their ideas are put into practice and produce actual products, they actually boost market demand. I believe there are a lot of people with real talents among the people and we must lift all the restrictions so that they can bring their talent to best use.
To boost market vitality, the government must eliminate roadblocks and pave the way for people to tap their entrepreneurship. The government plans to do more in this regard in 2015. Market access will be further relaxed; business license and all the required certificates will be required to be integrated into one single certificate; and people shouldn't have to go to so much trouble to get business registered in some areas of the services sector.
The government also needs to foster more favorable conditions especially for those micro and small-businesses; there needs to be the availability of low-rent maker spaces to add wings to entrepreneurship of our people. The government will also fully leverage the national guidance fund to encourage the participation of seed capital and also our taxes and fees will be further reduced to ensure that those small businesses will be able to forge ahead with a light pack.
A country could achieve prosperity when his people see in initiative is brought into full play. There will be much vitality in economic activity when there's ample business opportunities and choices for consumers.
To encourage mass entrepreneurship and innovation we want to help more people become better off and help more people achieve full potential in their life. This will also help us adjust the income distribution structure and promote social fairness. In particular we want to ensure that young people especially those children from poor families will have equal access to opportunities for upward mobility. Thank you.