China's economy on track, assures Vice-President Li Yuanchao

DAVOS: China's economy is on track and the country has entered a phase of steady rather than speedy growth, China Vice-President Li Yuanchao said.

Li reassured participants at the World Economic Forum Annual Meeting here that the world's second-largest economy will remain an important driving force for global economic growth.

"Despite the volatility in the world economy, China still achieved a GDP increase of over USD 500 billion (in 2015), which is estimated to be the largest in the world," he said.

China's GDP grew only 6.9 per cent, but Li said the "medium-high growth rate" is likely given the country's drive to diversify its economic growth drivers.

He said that China's shift in focus from speed to quality in economic growth is progressing well, with consumption accounting for 66 per cent of last year's 6.9 per cent GDP growth.

Li said China would continue economic reforms and encourage innovation and entrepreneurship to preserve the momentum. There is encouraging news in the 2.2 per cent growth of the high-tech sector, 30 per cent increase in online retail sales.

"For every single day last year, over 12,000 newly registered companies emerged across China," said Li adding this was an indication of invigorated entrepreneurship along with the surge in the number of technology and business incubators aimed at young entrepreneurs.

China is the chair of the G20 meet of developed and emerging countries this year, a grouping that accounts for 80 per cent of the world economy. The G20 summit will be held in Hangzhou under the theme "Towards an Innovative, Invigorated, Interconnected and Inclusive World Economy."

"The Hangzhou summit will focus its discussions on innovating growth models, improving global economic and financial governance, boosting international trade and investment, and promoting inclusive and interconnected development in an effort to provide new drivers for the development of the world economy," Li said.