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Chile expects China's sessions to speed up world economic recovery

(Xinhua)
Updated: 2009-03-07 15:11

SANTIAGO-- The annual meetings of the Chinese government now going on in Beijing are crucial and may be a "catalyst" to speed up the recovery of the troubled world economy, Francisco Encina, president of Chile's Deputies Chamber, said Friday.

The Chinese government and its people are doing their utmost to minimize the negative effects of the financial crisis, and new decisions to be made during the ongoing "two sessions" will not only guide the development of China's economy, but also have a profound impact on the world, Encina said in an interview with Xinhua.

Full coverage:  NPC and CPPCC 2009 Related readings:  China, ASEAN should work creatively to boost regional economy  Incentives will lift country's economy  China-US co-op a must for global recovery: WB head  Analysts differ on recovery timing

The meetings, the Second Session of the 11th National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC), have been a center of worldwide attention.

Encina spoke highly of China's positive and responsible stimulus measures announced in the wake of the crisis. He said the actions, aimed at increasing public spending and expanding domestic demand, will be a powerful backup for the world's ailing economy.

The world now hopes that China's plans might effectively prevent a further spreading of the crisis, he said, adding that sustained growth in China will be of vital importance to the world economy.

Encina said he agreed with Hilary Clinton, US Secretary of State who visited China last month, that the world cannot be lifted out of its financial turmoil without China's efforts.

The Chilean official said no one can escape the crisis -- his country has been disturbed by rising unemployment, shrinking exports and adverse credit performances. Small- and medium-sized companies are also struggling.

China was also hit hard by the crisis. Its double-digit growth since 2001 has been slowed and unemployment has started to climb. That's even though China has not yet slipped into recession like the world's other large economies -- the United States, the European Union, Britain and Japan.

Encina visited China for the first time last month at the invitation of the Standing Committee of the NPC and its chairman Wu Bangguo.

"The progress in China has been amazing in the last three decades," Encina told Xinhua.

China's unparalleled development has shown the world its economic vitality, and 30 years after reform and opening-up, the Asian country has become a major manufacturer and driving force of the world economy, he said.

China, a key trading partner of Chile, now means more and more to the Latin American country, Encina said, pledging concerted bilateral efforts to counter the financial crisis.

Chile is the world's largest copper producer, while China is one of the largest consumers of the mineral. The price of copper, to a certain extent, is determined by the demand of the Chinese market. A recent decline in copper prices, however, has led to a drop in bilateral trade volume, Encina said.

The trouble will only be temporary, Encina said, because China's stimulus plan will regain market confidence and help pull the world economy out of its slump.