China to further open up to the world

China will further relax the restrictions on foreign investors to engage in the Chinese market, Premier Li Keqiang said on Thursday in a speech at the annual Boao Forum for Asia in south China's Hainan Province.

Yang Xiyu, former executive vice president of the Institute of Boao Forum for Asia, said Premier Li's remarks reflect further opening-up for China to the world in terms of key sectors including the financial service sector.

Still, China will cut real interest rate levels and lower financing costs for companies. But foreign media have been saying the downside is China's debt level will go up. Yang said the worries of debt are reasonable.

"When you have a large scale of tax cuts, it means there will be a sharp reduction of government revenue. Premier Li pointed out that government should keep people's lives better, so the Chinese government should tighten its belt, which means reducing the budget," Yang said, adding that this is the main way for China to avoid a budget deficit increase.

Premier Li also reassured the world that China's economy is stable, given the market vitality, consumption levels and investment. Yang noted the speech is sending a positive signal and improving investor confidence.

"There are two things: Fundamental factors in Chinese economy are getting better, and the Chinese government has set a lot of major policies to stimulate further the sophisticated situation of economy," Yang added.

(CGTN)