Posted March 15, 2017 19:42:48

Photo: Li Keqiang is optimistic about the future of his country's relationship with the US. (Reuters: Jason Lee)

China's Premier Li Keqiang has publicly rejected the notion that countries in the Asia-Pacific need to make a choice between China and the United States.

Speaking at an annual media conference, Mr Li said China "does not want to see any party compelled to take sides under the influence of a Cold War mentality" — a reference often reserved to describe US foreign policy.

Relations with Washington dominated the event in a deliberate move by the Chinese Government, because it pre-approves all questions that journalists are allowed to ask the Premier.

"China-US relations have been going forward despite various twists and turns in recent decades, so I'm optimistic about the future of this relationship no matter who gets elected," Mr Li said.

In recent months, US President Donald Trump repeated concerns that China was manipulating its currency, the Yuan or Renminbi, to remain low in order to boost exports.

Mr Trump has also threatened new tariffs on Chinese imports to the US, but has not revealed any concrete plans.

"The depreciation of the Chinese Yuan against the dollar is quite modest," Mr Li said.

"China has no intention to devalue its currency to boost exports… [and] China has no intention to fight any trade war either."

Li Keqiang squashes doubts about China's economy

The Premier also used the occasion to defend the slowdown of China's massive economy.

The Government is hoping to expand GDP by about 6.5 per cent this year — a slowdown from 6.7 per cent growth last year.

Some foreign analysts have raised doubts about the official figures, claiming other economic indices — such as electricity consumption — suggest China's economy is already growing significantly slower.

The biggest economic risk Australia faces this year is a trade war between two of our biggest trading partners, writes David Taylor.

But Mr Li said previous doubts about China's economy had been disproved.

"Almost every year I have heard a prediction of the Chinese economy having a hard landing", he said.

"But I believe our economic performance in the last few years… should suffice to put such hard landing prophecies to a stop."

Australian resources exporters have grappled with falling commodity prices in recent years as China's economy slowed, but now the property sector in big cities is showing signs of a resurgence, despite huge oversupply problems in smaller cities.

Australian exporters of food, wine, tourism and education can also be buoyed by the growing importance of the service sector to China's growth.

In a sign that he would not cave to pressure for more government spending to boost jobs, Mr Li said China has maintained steady growth "without resorting to massive stimulus measures".

"China's economy will continue to enjoy medium to high growth," he said.

Topics: world-politics, business-economics-and-finance, international-aid-and-trade, globalisation---economy, china, united-states