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Wen: China sticks to stimulative policy

(Xinhua)
Updated: 2009-09-01 21:04

Beijing: Chinese Premier Wen Jiabao said here Tuesday China would not change the orientation of its stimulating economic policy as the country is at a critical stage in the recovery of the economy.

Wen said, when meeting with World Bank President Robert Zoellick, that China's government would continue to pursue proactive fiscal and moderately easy monetary policies.

"We will not change the orientation of our policy," Wen said.

Related readings:  Stocks fall as Wen says economy faces uncertainties  Premier Wen warns of uncertainties despite recovery  Wen: China's economic policy unchanged

Wen said China would fully implement and continue to enhance and perfect policy in response to the international financial crisis to achieve the goals of economic and social development.

China's economy grew 7.1 percent in the first half of this year and 7.9 percent in the second quarter, reversing a declining trend in the previous seven quarters.

World Bank President Zoellick said earlier China's economic recovery might be better than expected.

In the first seven months of this year, China has seen a robust growth of domestic demand as consumption surged 15.2 percent year on year and investment 32.9 percent. The Ministry of Commerce predicts China's exports will slow their decline or even grow on a monthly basis.

"The macro-economic policy and measures that China adopted in response to the international financial crisis have been proved in conformity with reality, prompt, forceful and effective,"  Wen said.

Wen said the world economy was now showing signs of stabilizing, but an all-round recovery would be a slow, difficult and complicated process. It would require long-term, concerted efforts by every country in the world in strengthening dialogue, coordinating policy and deepening cooperation.

Wen said imbalances in the global economy were rooted  in disparity in development. He urged the international community to pay special attention to difficulties faced by developing countries, especially the least developed ones. He said the gap should be lessened by increasing aid, writing off debts, opening markets and transferring technology.

Wen said China was ready to strengthen cooperation with the World Bank and make new contributions to achieving the UN Millennium Goals and sustainable development of the world.

This is the third time Zoellick has visited China since becoming World Bank President. Following his arrival Monday afternoon, Zoellick exchanged views on the major topics of his agenda in Beijing, the international financial crisis and climate change, with Chinese officials. Besides Beijing, Zoellick will visit Anhui province in east China.

Zoellick said the World Bank was willing to develop cooperation with China in areas such as international development aid, reform of international financial organizations and climate change.