Tuesday, May 26, 2015Tuesday, May 26, 2015

China premier says little room for policy stimulus: Media

Published on May 15, 2013 12:05 PM

BEIJING (REUTERS) - China has limited room to use government spending and policy stimulus to boost its economy, China Premier Li Keqiang was quoted as saying on Wednesday, dashing hopes among some investors that Beijing may take steps to foster growth.

Mr Li was quoted in the state-owned China Securities Journal as saying that though the economy faces considerable headwinds and uncertainty, China should allow market forces to do their work.

"If there in an over-reliance on government-led and policy driven measures to stimulate growth, not only is this unsustainable, it would even create new problems and risks," Mr Li was quoted by the paper as saying indirectly.

His remarks were made at a meeting of the state council, or China's cabinet, on Monday after a series of data showed a recovery in the world's No. 2 economy faltered in April.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!