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Economy to continue 'doing fine'

By Diao Ying (China Daily)
Updated: 2008-09-09 07:47

The government is fully confident of tiding over the difficult situation arising out of a global economic slowdown, Vice-Premier Wang Qishan said yesterday.

Addressing overseas investors at an international fair for investment and trade, Wang said: "The overall economic situation in China is fine.

"We are confident and ready to overcome difficulties and challenges to ensure a steady economic performance and to contain the fast-rising consumer price index."

The global slowdown seems to have little impact on the country's economy because its GDP maintained its double-digit (10.4 percent) growth in the first six months of this year.

Its retail sector registered 21.7 percent growth in the first seven months. And though official figures for August are yet to be released, economists have said inflation could continue to fall - as in the previous three months.

Driven mainly by domestic consumption, investment and exports, China's economic growth has become more balanced, Wang told 445 delegations from 104 countries and regions.

To continue attracting overseas investors and providing them even better services, the government will perfect the policies for the use of foreign capital, he said.

It will improve government services and guarantee a fair investment environment with a transparent legal system.

The government is encouraging foreign capital to flow into high-tech, modern agriculture and energy saving industries, and modern services to encourage innovation.

It made every possible effort to boost the economy after the disastrous snowstorms lashed the southern and eastern provinces and the Wenchuan earthquake killed almost 80,000 people and caused billions of yuan in economic loss, he said.

Global financial market fluctuations and rising commodity prices, too, have been tackled to keep the momentum of economic growth.

"The government has taken a series of macro-control measures to cope with the complicated situation," he said.

Minister of Commerce Chen Deming, who too was in Xiamen, said the domestic consumer demand has risen more strongly than expected after the Olympics.