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Premier urges stable but not excessive dependence on investment

Updated: Sep 22,2018 6:00 PM

“Maintaining stable investment does not mean excessive dependence on it. Actually, we have shortcomings in areas such as infrastructure and people’s livelihood. At the moment, we should focus on improving underdeveloped areas, adjusting structure, and positively expanding effective investment,” Premier Li Keqiang stressed at the State Council executive meeting on Sept 18.

At the meeting, it was decided that effective investment in key and weak areas would be expanded, to increase domestic demand, optimize structure and improve people’s livelihood.

Premier Li said the current situation is complicated at home and abroad. Maintaining stable investment — especially investment in infrastructure — is an important measure to maintain stable economic development.

The growth rate of fixed asset investment has declined since the beginning of this year, and infrastructure investment has declined year-on-year in some regions, which led to adverse effects in industrial upgrading, consumption promotion and employment promotion. The Premier urged measures to stabilize investment and curb the downward trend.

The meeting decided to increase infrastructure, transportation networks, major water conservancy and other agricultural infrastructure, key environmental protection projects, and technological transformation and upgrading in rural areas.

Work should be done to speed up early preparation, in a bid to start those projects as soon as possible, Premier Li said.

Meanwhile, projects should be properly arranged to ensure smooth construction flow and prevent losses caused by fluctuations, he added.

The Premier also stressed that related departments should guide financial institutions to provide more support to weak links, to avoid projects being abandoned.

Local governments should support weak projects with funds collected through bonds, promote government and private capital cooperation projects, and attract private investment in project construction, Premier Li said.