PREMIER Li Keqiang said Tuesday that the country will not resort to strong monetary stimulus, but instead it will take targeted policy steps to support private companies and smaller businesses, according to a statement on the State Council’s website.

China will step up efforts on reducing taxes, fees and market trading costs, Premier Li said, adding that it would help small firms facing funding difficulties and widen access for private firms in infrastructure. Li reiterated that China will continue to open up its financial markets including banking, securities and funds segments.

Li’s comments were made in a meeting with International Monetary Fund Managing Director Christine Lagarde, who is currently on a visit in China.

China will not resort to competitive currency devaluation and is able to keep its yuan currency basically stable, Li added.

China’s economy faces external and internal pressures, including trade friction with the United States, but should only ease policy when needed, Lagarde said Tuesday. Lagarde said she was reasonably upbeat about the global economy.

China’s economy is operating steadily and within a reasonable range and has a great potential for development, Premier Li said.

Although the country’s economy may see some fluctuations in the near future, it is within control, he said, adding the economic fundamentals are sound, as China is a big market and has the world’s most abundant human resources.

“We have a workforce of 800 million to 900 million, with 170 million with higher education or technical skills,” Li said.

He noted that China has implemented a prudent monetary policy and proactive fiscal policy in recent years, cut taxes and fees and actively developed new drivers of growth, and will continue to do so in the future.

According to the World Bank Group in its annual doing business report released Oct. 31, China advanced to a global ranking of 46 for ease of doing business this year, up from 78 last year.

China will continue to optimize the business environment and ease market access, Li said.

Li said that China’s business entities have exceeded 100 million, with 18,000 new enterprises registered daily, which drives the growth of employment. “That is the basic motivation for our development and China still has huge development potential in the future,” he said.(SD-Agencies)