Monday, November 29, 1999

China`s Wen warns against economic policy pile-up

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Chinese Premier Wen Jiabao has said the country faces difficult choices in moderating economic growth and must avoid piling on adjustment policies and risking "negative consequences", state media reported on Saturday.Wen made the comments while visiting the northern port city of Tianjin in recent days, the Xinhua news agency reported.His reported remarks did not suggest any policy shift, but underscored that Chinese policy-makers want to move carefully in efforts to temper inflation with signs that growth is slowing."At present, the national economy continues to improve, but domestic and external conditions remain extremely complex, and macro adjustment faces many dilemmas," said Wen, according to the report."Pay attention to coordination in macro economic policy, so that it forms into a cohesive overall force and also prevent negative consequences from multiple overlapping policies," Wen told officials in Tianjing, according to the report.China's gross domestic product expanded 8.7 percent in 2009 thanks to massive monetary and fiscal stimulus, and most economists say growth in 2010 will top that figure, after first-quarter year-on-year growth of 11.9 percent.But the government is worried about inflationary pressures and roaring real estate price rises and has been seeking to temper those pressures, so far without clear effects.Chinese annual inflation pushed up to an 18-month high in April, when consumer prices rose 2.8 percent on a year earlier.As well, Chinese property prices jumped 12.8 percent in April from a year earlier, the fastest pace on record.Wen's comments indicated that the government is seeking to bring down price pressures without risking economic growth, and remains committed to the basic policy settings put in place to counter the global financial crisis."Adhere to an active fiscal policy and an appropriately loose monetary policy, and properly handle the direction, intensity and pace of macro adjustment, maintaining balanced and relatively fast economic development," said Wen, according to the report.
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