Li Keqiang calls for balanced income growth

Li Keqiang, China’s probable next premier, told local officials that China’s rapid economic growth must raise incomes for ordinary people, a sign of shifting priorities for the world’s second-largest economy, Bloomberg reported. China will relax restrictions on private investment and allow local governments more power to approve projects, Li stated. He also reiterated that the country must rely on urbanization to ensure sustainable growth. “Li is expected to make changes on many fronts, including relaxing the household registration system and breaking the state monopoly in certain industries,” said Shen Jianguang, Hong Kong-based chief Asia economist at Mizuho Securities Asia. “They are talking about reform quite loudly, and I believe they are serious.” Li’s remarks followed affirmations by the country’s new leadership at the Central Economic Work Conference that they will seek higher “quality and efficiency” of growth next year.