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Premier Wen predicts China's economy

0 Comment(s)Print E-mail China.org.cn, September 12, 2012
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Chinese Premier Wen Jiabao?delivers a speech at the opening ceremony of the 2012 Annual Meeting of the New Champions, also known as the Summer Davos.

Chinese Premier Wen Jiabao reaffirmed that the Chinese economy will keep growing despite signs of slowing down over the first half of this year, and?compared the Chinese economy to a "giant ship."

"The giant ship of the Chinese economy will sail ahead quickly yet steadily and reach the shore of a brighter future," the Premier said at the opening ceremony of the 2012 Annual Meeting of the New Champions, also known as the Summer Davos.

Wen summarized the government's work during the past 10 years and concluded that the period had laid solid material, technological and institutional foundations for the country's future development.

Many important factors in today's Chinese society, including the path of scientific development, improved macro-regulation, and a stable social and political environment, will help the country's economy maintain stable growth in a long term, Wen said.

Macroeconomic indicators show that China's economic and social development is in good shape, said Wen, adding that "although growth is slowing down, it is being more stable."

As the recent measures are implemented and take effect, we expect the economy to further stabilize, Wen added.

The premier pledged to utilize the ample fiscal and monetary policy space, fully tap the huge potential of domestic demand and motivate the various localities and departments.

In his speech, Wen also dismissed accusations of the alleged side effects of China's 4-trillion yuan (631 billion U.S. dollars) stimulus package unveiled in 2008 in response to global financial crisis.

"I want to make it clear here that it was exactly due to our resolute decision and scientific response that China was able to avoid factory closures, job losses and return of migrant workers to their home villages", Wen said in response to suggestions that China paid an "undue price" during the execution of the package.

China's plan not only facilitated its swift economic upturn, but also promoted the economic recovery of the world economy, according to Wen.

"These stimulus measures helped us keep the good momentum of economic development, maintain social stability and harmony and protect China's modernization process from major setbacks," he added.

Wen also rebutted the view that China's growth has come to an end after 30 years of reforms and opening-up, arguing that the country voluntarily lowered its economic growth target to stabilize the growth and adjust the economic structures.

Wen told the forum that he had confidence in China's future as the country has great development potential, especially with its huge domestic market.

Prof. Klaus Schwab, founder and executive chairman of the Geneva-based World Economic Forum, complemented China on its "extraordinary achievement" over the last decade, and especially during the past five years of difficulties in the global economic environment.

Schwab also extended his belief in China's continued growth in economic, social and environmental areas.

With respect to the world's recovery from the ongoing global financial crisis, Wen noted that "it is all the more important for us to boost confidence and stick together to meet the difficulties head on."

He then stressed that he always believes that confidence provides a source of strength and technological innovation offers a fundamental means to overcome the crisis.

This year's three-day forum is themed "Creating Future Economy." It has attracted some 2,000 participants from 86 nations and regions this year.

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