- The people's livelihood

"Reform and development are not in conflict."

Premier Li answered a question that is of concern to the average Chinses citizen: Pension benefits issues. Should the government be hands off or on? Premier Li state that "The Central Government will give subsidies to local governments (regarding pensions) if they do their best. China will ensure the payment of pension benefits in the long run."

The Premier noted that instead of economic stimulus measures, China has chosen to engage in structural reforms in order to ensure growth and avoid the financial risk. He noted that this will mean getting a handle on industrial overcapacity by engaging in supply-side reform in order to avoid mass layoffs. Government has financial resources to cover layoffs.

The question of what the government will do to press ahead with reform elicited an interesting response by Premier Li, noting that the government will "further boost productivity and improve government services." Li observed that this improvement will take place through administrative streamlining and the delegation of power, primarily by cutting the items requiring State Council review and approval of administrative procedures, licensing, and permits. The Premier stated that "we are determined to press ahead, even if the government has to make painful adjustments."

The Premier was asked about increasing transparency in government affairs, noting that "Government information openness should be a standard practice. More information needs to be made public if it is in the public interest." Premier Li underscored this point by noting that "Government has the responsibility to explain policy decisions to the general public."

"We'll continue to welcome supervision from the media and general public," he said.

Premier Li also stated that he often hears complaints about medical insurance where people can claim costs away from home village. He noted that the government is working on a solution to the issues of affordability and portability.