China has sent a clear signal that large-scale stimulus will not be employed to hit its growth goal this year, but it will maintain targeted macro policies, while refining coronavirus controls to soothe foreign investor fears.
"We won't resort to super large stimulus or excessive money printing to accomplish a high growth target. That will overdraw on the future," Premier Li Keqiang said on Tuesday at a virtual dialogue hosted by the World Economic Forum with nearly 400 global business leaders.
"We'll try our best to achieve good results this year."
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Li's comments come amid fresh concern about the toll of Beijing's zero-Covid policy on the world's second largest economy, with growth slumping to 0.4 per cent year on year in the second quarter and foreign companies becoming more frustrated with virus restrictions.
Li's speech could set the tone for China's quarterly Politburo meeting, which is expected to be held next week to discuss the economy.
Tuesday's event was attended by executives from some of the world's biggest companies, including Airbus CEO Guillaume Faury, and Jian Lu, president of LinkedIn China. Business leaders expressed concern about the state of China-US relations, climate change, manufacturing prospects and China's consumption policies.
Li, China's No 2 political figure, said the government will adjust its coronavirus control measures to be more targeted and well-calibrated, promising to improve visa access, testing policies and increase international flights.
"All international students may return to China to continue their studies should they so wish, and outbound commerce and trade activities and cross-border travel for labour services will be advanced in an orderly fashion," he was quoted as saying by the official Xinhua News Agency.
China would also seek common ground in trade disputes, while keeping industrial and supply chains secure and stable, Li said.
"China's market is also the world's market," he said. "China will continue to pursue all-round opening to both developed and developing countries ... and promote free trade and fair trade."
In May, amid heightened concern about the impact of lockdowns across the country, Li unveiled a package of 33 policies to support the economy, including fast tracking infrastructure projects and loan extensions for business, increasing tax breaks and rebates, encouraging car sales, and adding support policies by the end of this month. The government also pledged to be more receptive to foreign companies' concerns.