Premier Li says China will reach economic targets

Premier Li Keqiang Image copyright Getty Images
Image caption China's Premier Li Keqiang was confident the country's economy was on the right track despite the challenges it faces

Chinese Premier Li Keqiang has said China is on track to meet all its economic targets for this year despite fears of a deepening slowdown in the world's second largest economy.

Speaking at the World Economic Forum in Dalian, Mr Li reassured global business leaders that China's economy is "shock resistant and resilient".

He said China was not a source of risk but a source of growth for the world.

His comments come as data showed deflation fears are growing in China.

Inflation figures for August showed that manufacturers in the country often considered the "workshop of the world" cut prices at the fastest pace in six years as commodity prices and demand fell.

The producer price index (PPI) fell a more than expected 5.9% from the same period last year - marking the 42nd consecutive month of declines.

Consumer prices, however, rose 2% in the same period to a one-year high, but the rise was mainly due to higher food prices and not an improvement in economic activity.

'No hard landing'

Despite this, Premier Li said there was no risk of a hard landing in China, because the government is capable of supporting growth.

"If there are signs that our economy is sliding, we have the adequate resources to deal with it," he said.

China has already cut interest rates five times since November to encourage lending and spur economic activity, along with other measures to boost growth.

Premier Li added that China would take more steps to boost domestic demand and implement more policies to lift imports.

Data from earlier this week showed a steep fall in imports last month on the back of lower commodity prices, particularly oil.

China also revised down its 2014 growth figures from 7.4% to 7.3% - which was its weakest showing in nearly 25 years.

For this year, the government is targeting annual economic growth of about 7% - marking its slowest expansion in a quarter of a century.

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