Financial Times: The international community is following very closely China’s financial and debt risks, regarding this as one of the highest risks for the global economy. What will the Chinese government do to tackle such risks? Is the government willing to see default of financial products?

[李克强]你的中文说得很流利，也很标准，我听懂了。但是因为这是中外记者招待会，还得请翻译做一次翻译。关于对中国经济有风险，甚至还有些不看好的报道，最近我也看到了，类似的报道可以说似曾相识，去年就有对中国经济下行的担心，但是我们就是在这样的背景下，顶住压力完成了全年经济主要预期目标。对金融和债务风险我们一直高度关注，去年在经济下行压力加大的情况下，我们果断决定全面审计政府性债务问题，这本身表明要勇于面对。审计的结果如实对外公布，表明债务风险是总体可控的，而且政府的债务率还在国际公认的警戒线以下。很多债务还是投资性的，但我们不能忽视其中存在的风险，正在加强规范性措施。下一步，包括采取逐步纳入预算管理，开正门、堵偏门，规范融资平台等措施。

Li Keqiang: I’ve got your question very clear as you speak very good Chinese, but this is a press conference for both Chinese and foreign journalists, so we still need the translation. There is such a view that the Chinese economy is confronted with risks, and I have read such reports which are not optimistic about the Chinese economy. They bear resemblance to the past bearish talk about the Chinese economy. For example, there was this concern last year about China’s economic downturn. Yet in spite of the pressure, we achieved our goal set for economic growth. We pay very high attention to the financial and debt risks. Faced with increased downward pressure on the economy last year, we conducted a comprehensive audit on

government debt. That shows that the Chinese government has faced up to this challenge. We have released to the public the audit result as it is. And it shows that the risks are on the whole under control. Moreover, our debt to GDP ratio is below the internationally recognized warning line, and most of the debt takes the form of investment. But the government will not overlook potential risks. We are going to intensify regulatory steps, put those debts under budgetary management over time and enhance the oversight of financing vehicles. In a word, we are going to keep the front gate open and block side doors.

对于“影子银行”等金融风险，我们也正在加强监管，已经排出时间表，推进实施巴赛尔协议III规定的监管措施。我两会期间参加一个代表团的审议，有来自银行界的代表问我，是不是资本充足率的要求偏高了一些？我们还是发展中国家，但是我们只能这样做，我们不能把今天的垫脚石变成明天的绊脚石。至于你问我是不是愿意看到一些金融产品违约的情况，我怎么能够愿意看到呢？但是确实个别情况难以避免，我们必须加强监测，及时处置，确保不发生区域性、系统性金融风险。谢谢。

As for financial risks such as shadow banking, we have tightened regulatory measures, set a timetable and started to apply the Basel III requirements. When I participated in the panel discussion during the two Sessions, a deputy from the banking sector said to me: Isn’t the capital adequacy ratio in China a bit too high? After all, we are still a developing country. But this is a must for us, as we don’t want to let today’s stepping stone become tomorrow’s stumbling block. As for default of financial products, how could I want to see such thing happen? Yet I’m afraid certain individual cases of such defaults are hardly avoidable. What we should do is to step up monitoring, promptly handle relevant situation and ensure that there will be no regional and systemic financial risks.

[人民日报、人民网记者]总理，您好。现在社会上有不少人担心中国的反腐败会不会是一阵风？去年我们也查出了不少贪官，这是否说明中国在制度方面还存在着某些缺陷？此外，政府下一步在反腐败上还会有什么新的行动？谢谢。

People’s Daily: There is a widely shared concern in the society as to whether this recent anti-corruption campaign will be a short-lived one. Last year, many corrupt officials were dealt with, but does this show there exist some institutional flaws in China? What new steps will the government take to combat corruption?

[李克强]中国党和政府反对腐败的意志和决心是一贯的。十八大以来，以习近平同志为总书记的党中央坚持有贪必反、有腐必惩，取得新成效，我们会坚持不懈地做下去。对于腐败分子和腐败行为，我们实行的是“零容忍”。中国是法治国家，不论是谁，不论职位高低，法律面前人人平等，只要是触犯了党纪国法，就要依法依纪严肃查处、惩治。

Li Keqiang: The Communist Party of China and the Chinese government have a firm will and resolve to fight corruption. This is our consistent position. Since the 18th National Congress of the Communist Party of China, the CPC Central Committee with Comrade Xi Jinping as General Secretary has been steadfast in combating corruption and holding corrupt officials accountable. New progress has been made in this regard and we will carry forward this campaign with perseverance. For

corrupt behaviors and corrupt officials, we will show zero tolerance. China is a country under the rule of law. No matter who he is and how senior his position is, if he violates Party discipline and law of the country, he will be seriously dealt with and punished to the full extent of the law, because everybody is equal before the law.