China’s Li – more positive signs in the economy, but recovery is not solid

Chinese premier Li Keqiang reiterated today that there are more positive signs in the economy but the foundation of the recovery is not solid.

Key quotes

Replacing business tax with value-added tax will not only provide forceful support to current economic growth but also serve as a long-term growth engine for the future

VAT reform is an important part of structural reform, particularly supply side reform

It amounts to the biggest tax cut in recent years and will greatly reduce companies' tax burden, he said. It will boost demand, encourage companies to step up R&D spending and create more jobs