Chinese premier Li Qiang confident of dragon economy's recovery

Chinese Premier Li Qiang expressed confidence that his government can pull off an economic recovery, while also taking an apparent shot at the US and EU over trade.

"The Chinese government has the ability to drive sustained economic improvement," Li said in a speech Tuesday at the opening of the China International Import Expo in Shanghai.

He added that officials had "ample space for fiscal policy and monetary policy," and reiterated that China would hit its economic growth target of around 5%.


Li's remarks on the economy underscore Chinese officials' persistent optimism that they can reach their expansion target in the face of weak consumer sentiment, deflationary pressures and property market woes.

Recent data seem to be backing them up. On Tuesday, a private gauge of services activity last month expanded at the fastest pace since July, a sign that consumer demand may be on the mend after Beijing moved to shore up growth with a barrage of stimulus measures.

Investors are awaiting details of fiscal support after the Chinese government unveiled that stimulus package. The backing could come at a meeting of the top legislative body this week.

China's benchmark CSI 300 Index closed up 2.5%, the biggest gain in more than two weeks. The Hang Seng China Enterprises Index advanced 2.6%.

Li also appeared to poke at the US and European Union for their trade policies, mentioning "various acts of dishonesty," without going into specifics.

On Monday, China lodged a complaint with the World Trade Organization over the EU's levies on Chinese electric vehicle imports. The US has enacted its own EV tariffs, and Washington has also worked to cut China's access to advanced chip tech, citing military concerns.