We cannot ignore the risk of disorderly adjustments in financial markets.

We should find a balance between opening the market and (national) security issues; not every financial sector is sensitive.

instead of transferring various risks to the government, as they did under the fixed-exchange regime.

China has undertaken several reforms related to the safety net, healthcare reform, pension reform, education reform in the hope to reduce precautionary savings.

Otherwise, in two or three years' time, once domestic consumption loses steam, there will then be a lot of pressure around issues such as the exchange rate and trade friction.

What the premier said means that China would continue to increase the flexibility of the RMB exchange rate in a gradual manner.