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China's Wen urges innovation to fight crisis: state media
Beijing (AFP) March 22, 2009 China's Premier Wen Jiabao has urged businesses to focus on upgrading and innovation to help ride through the global financial crisis, state media reported Sunday. "Chinese companies should focus on adjusting product structure, improving quality and upgrading technologies in the face of economic woes," Wen said during a visit to northeast China, the official Xinhua news agency said. Urging enterprises to move sooner rather than later, Wen said efforts should be stepped up to develop new products and foster intellectual property rights, Xinhua said. He once again emphasised the implementation of China's four-trillion-yuan (580-billion-dollar) stimulus package, unveiled in November to fight the impact of the crisis on the country's trade-dependent economy. A top official at the State Council, or cabinet, said earlier Sunday that the package was expected to contribute 1.5 to 1.9 percent to China's growth this year, Xinhua reported. China has set an economic growth target of about 8.0 percent this year, a level that the government says it needs in order to keep unemployment at a manageable level. However, just over a week ago, Premier Wen Jiabao admitted this target would be difficult to achieve. On Wednesday, the World Bank slashed China's economic growth forecast to 6.5 percent in 2009.
earlier related report "Investing in US Treasury bonds is an important element in China's investment strategy and we will continue this practice," Hu Xiaolian, deputy governor of the China's central bank, told reporters. China has been the top holder of US Treasury bonds since September, when it overtook Japan for the first time, according to US data. As of late January, it had accumulated a total of 739.6 billion dollars in US Treasury bonds, the most recent data from the US government showed. But some Chinese commentators have voiced frustration that Beijing has been unable to find higher-yielding investment targets for its huge forex reserves. And in a rare expression of official concern over Beijing's huge bond holdings, Premier Wen Jiabao earlier this month called on the United States to safeguard its investments. "To be honest, I am a little bit worried and I would like to... call on the United States to honour its word and remain a credible nation and ensure the safety of Chinese assets," Wen had said. He spoke after the United States approved a massive economic stimulus package, which some fear could drive down the value of dollar-based assets. US President Barack Obama's administration quickly responded to Wen's concerns by saying China's bonds were safe. The central bank's Hu said that while Treasury purchases would remain key to China's investment plans, Beijing would also keep a close eye on them. "I also want to stress that we pay great attention to the fluctuations of the value of our assets," she said, without elaborating. Speaking at a press briefing on China's participation in next week's G20 summit in London, Hu said the world economic crisis had impacted the rate of growth in China's forex reserves. "In many emerging markets there has been a serious outflow of capital, but this has not happened in China. But compared to the massive inflows of capital in recent years, it has been slowing down," she said, while providing no figures. "We have full confidence in China's balance of payments." China's forex reserves hit 1.95 trillion dollars at the end of 2008, making them the world's largest. Chinese media reported last week that the reserves had fallen by about 30 billion dollars in January, partially due to a drop in the value of non-dollar assets. At Monday's briefing, Hu and other officials said that at the G20 summit, Chinese President Hu Jintao would push for deep reform of the global financial regulatory system and greater decision-making powers for developing nations. Share This Article With Planet Earth
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Washington DC (UPI) Mar 20, 2009Last month Congress passed the biggest spending bill in history, and policymakers want to make sure the money isn't misspent -- a problem Republicans say wasn't adequately discussed before the cash was handed out. |
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