File photo of Chinese Premier Li Keqiang. (Associated Press)
The Chinese government is capable of maintaining high economic growth, Premier Li Keqiang said today, after fears the economy was slowing rocked global financial markets in recent weeks.
Mr Li addressed a crowd of about 200 entrepreneurs and executives, including Alibaba's Jack Ma and multinational corporations, at the World Economic Forum in Dalian.
Global markets have been in turmoil for weeks on worries about slowing growth in China, a key driver of global expansion, wiping trillions off share prices. The panic has also hammered mainland Chinese markets, with Shanghai's exchange plummeting after a debt-fuelled bubble burst.
"The Chinese government is capable of maintaining medium- to high- speed economic growth," Mr Li said. "China's economy is also facing downward pressure and people are concerned about China's economic situation."
Economic growth stood at 7.0 per cent in each of the first two quarters this year, but on Monday the government lowered its 2014 growth reading to 7.3 per cent, from the 7.4 per cent announced in January.
But Mr Li pledged further state support for the economy.
"We will stick with our basic policy stance and continue to push forward reform and opening up as well as structural adjustments," he said. "We will also step up range measures and targeted macro-control measures."
In share trading today the Shanghai stock market surged 2.29 per cent, extending a rally of almost three per cent yesterday on hopes for government measures to support the economy.
Mr Li also said local government debt, a perpetual concern among global investors, would not be an issue in the future, saying about 70 per cent of that debt are for investments with good returns.
He also defended a decision last month by the government to devalue China's currency, the renminbi, saying it "will maintain a reasonable equilibrium level".