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China says there will be no major short-term stimulus

Published on Apr 10, 2014 12:53 PM

BOAO, China (Reuters) - Chinese Premier Li Keqiang ruled out major stimulus to fight short-term dips in growth in the world's second-biggest economy, dashing investor hopes that the government would aggressively combat a slowdown in activity.

Li stressed on Thursday that job creation was the main policy priority, telling an investment forum on the southern island of Hainan that it did not matter if the growth was a little below the official target of 7.5 per cent for this year.

"We will not take, in response to momentary fluctuations in economic growth, short-term and forceful stimulus measures," Li said.

"We will instead focus more on medium- to long-term healthy development." His comments are among the clearest yet on the government's plans for the economy, which has rattled global investors this year with a surprisingly lacklustre performance.

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