China to reform old, boost new growth engines: premier

Breakthroughs will be made in steel and coal sectors in reforms of traditional industries, along with China's efforts to cultivate new growth engines, the Chinese premier said on Wednesday.

It is crucial to make a good start for the 13th Five-Year Plan period, according to a statement released after a symposium of the State Council, chaired by Premier Li Keqiang, to discuss key work for this year.

"Steel and coal sectors should take the lead in cutting overcapacity, digest unreasonable inventories, reduce costs and improve efficiency," he said.

China must fully assess current challenges and risks, as prices of international commodities continues dropping, economic performances in key economies are growing different and adjustments of macro-policies have brought new uncertainties, he said.

On the other hand, China's economic fundamentals are still healthy, and new dynamics from new industries and new businesses keep growing stronger, said Li, calling for enhanced confidence to promote development.

He urged boosting structural reforms, especially supply-side structural reforms, and innovate the ways of adjustment to ensure the economy operates within a reasonable sphere. China will accelerate the cultivation of new growth engines -- a key aspect of supply-side structural reforms -- and encourage entrepreneurship and innovation, according to Li.

He expected the creation of new and effective supply to better adapt to structural upgrade of demand.

China will repair "short slabs" in sectors such as agriculture, service, infrastructure, environmental protection and social undertakings, according to Li.

Transfers between new and old growth engines are of "dialectical unity," as new growth engines, if fully grown, can create a lot of jobs to help receive employees in the traditional sectors and upgrade the traditional sectors, while reforms of traditional sectors can invigorate dormant resources to provide space for the development of new engines, Li said.

Vice Premier Zhang Gaoli also attended the meeting. Endi