Chinese premier warns stimulus not a solution

Chinese Premier Li Keqiang said the foundations of a growth rebound aren’t solid while cautioning that stimulus won’t help resolve deep-rooted issues in the world’s second-largest economy.

“The foundation of an economic recovery is not solid yet with many uncertain factors,” Li said in a speech today at the World Economic Forum in Dalian, China. The nation is taking steps to stabilise growth and can achieve the main economic targets this year, Li said.

Policy makers have signalled they will defend a 7.5% expansion goal for 2013 and seek to ensure a pace of 7% in the coming years. Li pledged reforms that would ripple throughout the financial system as Communist Party leaders prepare for a November meeting to lay out a blueprint for sustaining long-term growth.