Wen cautions of complex fiscal year
Source: Xinhua |
March 15, 2010, Monday
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Print Edition
Print Edition
PREMIER Wen Jiabao said yesterday that China was facing the "most complicated" economic conditions this year and would be "very cautious and flexible" in choosing the timing of the stimulus exist to shore up the hard-won recovery.
Since the world economy still faced the risk of a "double dip," China had to strike a balance between maintaining economic growth, adjusting the economic development model and managing inflation expectations, Wen told reporters after the end of the annual session of the National People's Congress, China's legislature.
He said China was opposed to "finger-pointing" at its currency policy, and pledged to keep the yuan at an appropriate, balanced level.
The complications facing the Chinese economy came from the tricky relations between its domestic economic targets and uncertainties in the global recovery, Wen said.
"Challenges and problems in the world economy have not been fully addressed, as major economies are plagued by high unemployment and debt crisis, which poses risk of a 'double dip,'" Wen said.
As the world's major economies still struggle, China staged a speedy recovery with an 8.7 percent economic growth last year, on the back of the 4 trillion yuan (US$586 billion) stimulus package and 9.6 trillion yuan of bank loans.
China would make more efforts to keep economic policies flexible while closely watching domesticand global changes, Wen said.
The government should properly handle the balancing act between maintaining economic growth, adjusting the economic development model and managing inflation expectations this year, which the premier described as "a tough job."
Wen said agriculture was the lifeline of the national economy and played a decisive role in all of these key economic areas.
Wen said the Chinese economic bounceback was not seamless, pointing to many enterprises not improving performance and relying on stimulus measures to stay afloat.
At the conference, Wen said he was "still worried" about China's greenback assets, echoing his remarks at the same time last year.
"The instability of the US dollar is of great concern for China's foreign assets," he said, urging the American government to take action to assure foreign investors about its Treasury bonds.
China remains the largest creditor of the US, holding US$894.8 billion in US Treasury bonds at the end of last year.
He said China needed to guarantee the "safety, liquidity and good value" of its foreign exchange reserves and diversify their investment.
"Safety is China's top concern for the country's foreign-reserve investment," he said, noting that China could afford any mistake in the management of the country's financial assets.
Since the world economy still faced the risk of a "double dip," China had to strike a balance between maintaining economic growth, adjusting the economic development model and managing inflation expectations, Wen told reporters after the end of the annual session of the National People's Congress, China's legislature.
He said China was opposed to "finger-pointing" at its currency policy, and pledged to keep the yuan at an appropriate, balanced level.
The complications facing the Chinese economy came from the tricky relations between its domestic economic targets and uncertainties in the global recovery, Wen said.
"Challenges and problems in the world economy have not been fully addressed, as major economies are plagued by high unemployment and debt crisis, which poses risk of a 'double dip,'" Wen said.
As the world's major economies still struggle, China staged a speedy recovery with an 8.7 percent economic growth last year, on the back of the 4 trillion yuan (US$586 billion) stimulus package and 9.6 trillion yuan of bank loans.
China would make more efforts to keep economic policies flexible while closely watching domesticand global changes, Wen said.
The government should properly handle the balancing act between maintaining economic growth, adjusting the economic development model and managing inflation expectations this year, which the premier described as "a tough job."
Wen said agriculture was the lifeline of the national economy and played a decisive role in all of these key economic areas.
Wen said the Chinese economic bounceback was not seamless, pointing to many enterprises not improving performance and relying on stimulus measures to stay afloat.
At the conference, Wen said he was "still worried" about China's greenback assets, echoing his remarks at the same time last year.
"The instability of the US dollar is of great concern for China's foreign assets," he said, urging the American government to take action to assure foreign investors about its Treasury bonds.
China remains the largest creditor of the US, holding US$894.8 billion in US Treasury bonds at the end of last year.
He said China needed to guarantee the "safety, liquidity and good value" of its foreign exchange reserves and diversify their investment.
"Safety is China's top concern for the country's foreign-reserve investment," he said, noting that China could afford any mistake in the management of the country's financial assets.
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