The newly elected Chinese Premier Li Keqiang, has admitted that his country will face huge challenges as it attempts to reduce economic growth through the implementation of new reform measures.
The Chinese government is set to introduce its market reforms in order to generate a period of stable growth after the economic expansion abruptly slowed during the first quarter of this year, after more than a decade of rapid expansion.
Li explained that "as the size of the Chinese economy expands, China's economic development is entering a range of reasonable growth."
In 2012 the Chinese economy expanded by 7.8 percent, the slowest in 13 years, and this year the target growth is 7.5%, both figures that Li believes provide the opportunity for stability into the future.
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Premier Li also stated that the Chinese governments ambitious overhaul of the economic strategy will offer great opportunity for the rest of the world.
Li is spending his first trip abroad as Premier on a visit to Germany where he hoped to reduce trade tensions with Europe and forge stronger ties. He spent all of Sunday in talks with the government of German chancellor Angela Merkel, attempting to resolve the trade issues created by the cheap solar cells flooding the European market, and the subsequent trade tariffs that the UE imposed on Chinese imports.
By. Charles Kennedy of Oilprice.com
Charles is a writer for Oilprice.com More