Li Keqiang, the Chinese Premier, said last week that economic stagnation brought on by backward policies will be reversed as he intends to throw the doors of the country’s economy wide open.
Li says that the move will significantly increase economic development.
In a speech to the annual U.N. General Assembly he said, “From past experience we know there can be no benefit from shielding your nation from positive foreign investment, it will only lead to regression and tepid growth. The past decades have shown us this, and we want to be more open to the world.”
Li also mentioned that the world economy was suffering from very low aggregate demand, and development of the major global players could not afford the kind of slow growth that has been experienced recently.
“Sustainable, fast-paced growth can only be achieved if we change demand-management policies and reform the supply chain. We need to look at both short and long-term,” Li said.
The latest comments from the Chinese leader come amid criticism at a business dinner in New York where many foreign company executives voiced their complaints regarding heavily restricted access to the Chinese market.
“In this day and age there needs to be some kind of co-operation on a macroeconomic level,” said a spokesperson at CTI China Renaissance in an email to investors.
“In the current climate more than ever, the bigger world economies need to factor in the health of their major trading partners. It’s a case of love thy neighbour, if they are doing well they are going to increase orders for your products,” he added.
Li has pledged to start the plan by setting up a clearing bank in Shanghai for New York business, starting from 2017.
