On Tuesday, Premier Li Keqiang, along with other top officials, sat down with economists and businessmen to discuss the economy. Addressing more than 20 chiefs of provinces and economic departments, Chinese Premier Li Keqiang said “The current external environment [has become] more complex and severe, with increasing downward pressure on the domestic economy, rapidly rising prices of pork and other products, and increasing difficulties in the business operations of companies.” Hinting that the government could do more to stabilize growth, he said “[We must] make better use of counter-cyclical adjustment tools for macro policies” and [We must] improve fiscal, monetary, employment, regional, and other policies and adjust them appropriately in a timely manner.” Li Keqiang indicated that his main focus remains on helping small businesses. He said “[We must] strengthen support for the real economy, especially for small and micro-enterprises and private enterprises, and boost market confidence” and “[We must] break the hidden barriers for enterprises' investments and development.”

Among the economists invited were: Cai Fang – Vice president of the Chinese Academy of Social Sciences; Liu Qiao – Dean of the Guanghua School of Management at Peking University; and Lu Ting – Chief China Economist at Nomura. All three are strong advocates for market-oriented reforms and all got their PhDs in the US.

(Comment: Reports suggest that officials in Beijing are worried about the economy. The annual Central Economic Work Conference is about a month away.)