Transcript of Premier Li's interview with Financial Times

Barber: Mr. Premier, we are in the Hall of Hong Kong, are you satisfied that the package offered by the Beijing government will be adopted by the Hong Kong legislature? Or do you think we are still going to have problems, student unrest in Hong Kong? Are you worried about that?

Li Keqiang: About Hong Kong, you know that we always follow the principles of “one country, two systems”, “the people of Hong Kong administering Hong Kong” and a high degree of autonomy. The Chinese central government will continue to support the Hong Kong SAR government and the Hong Kong SAR Chief Executive in administering the region in accordance with law. In spite of what happened recently in Hong Kong, we believe that past progress has shown that the principle of “one country, two systems” is the right way to take and that Hong Kong will maintain long-term stability and prosperity. The splendid night scene of Hong Kong in the picture behind us carries three key messages: the “one country, two systems” principle has strong vitality, the Hong Kong SAR government has full capability and the Hong Kong residents have their wisdom. We believe all issues can be properly settled.

Barber: Premier Li, thank you for your generous time for me as a visitor to Beijing. This conversation has merely whetted my appetite for the third conversation, maybe even on record, either in London or even in Beijing, or in Hong Kong.

Li Keqiang: I see you have recorded it. I can take responsibility for every sentence said. We've had a very good conversation and I see you do have the capacity to bombard me with a succession of questions. So, maybe one final question.

Barber: This is one newspaper, two journalists. I give this opportunity to Mr. Pilling.

Pilling: Some of the actions being taken in China, Mr. Li, including exchange rates, reserve requirement, and in terms of housing market, suggest that you are worried that the economy is slowing down more quickly than you would like. And there is some data that shows that the economy is growing well below 7%. Are you worried that the economy is slowing down too fast?

Li Keqiang: I cannot give you the data of China's GDP growth in the first quarter now. In some time, it will be released by China's statistical bureau in accordance with law and we will not intervene in those data. On the whole, there has been stability in employment. This is a very important thing, because the ultimate goal of steady growth is to ensure employment. It's true that our economy is still under downward pressure. Hence, since the fourth quarter of last year, we have made fine-tuning adjustments to our fiscal and monetary policies, but these adjustments are not a QE policy. Instead, they are targeted regulatory steps and they have paid off. Our goal is to keep China's economic operation within the proper range. We want to achieve not just an approximately 7% growth, but also fairly sufficient employment, increase in household income and improvement of the environment. These preemptive measures and fine-tuning adjustments to our fiscal and monetary policies as well as the government's self-targeted reform of scaling back administrative power to give more play to the role of the market have managed to offset the downward pressure on economic growth. We have the ability to keep economic operation within the proper range. The Chinese economy has become so large, amounting to 10 trillion US dollars. So, it won't be easy to achieve another 7% growth this year. This requires vision, perseverance and courage. When the end of the year comes and we need to turn in the report card, we shall ask the people and you too, Mr. Barber, are also welcome to pass the score on how we have performed.