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PATTAYA, Thailand, April 11 (Xinhua) -- Chinese Premier Wen Jiabao, in an interview with Hong Kong and Macao reporters here Saturday, said that the Chinese economy showed signs of better than expected positive changes in the first quarter as a result of the economic stimulus package adopted by China. Firstly, the domestic demand rose on a sustainable basis. Meanwhile, investment in fixed assets increased rapidly and consumer demand grew steadily and relatively rapidly. Although lower from the same period of last year, imports and exports grew on a month-on-month basis in the three-month period, Wen said. This indicates that some sectors and enterprises in China are in a process of gradual recovery. Secondly, industries above the designated size registered month-on-month growth, with a year-on-year increase of 3.8 percent in both January and February, and a year-on-year increase of 8.3 percent in March. Thirdly, the purchase management index and the entrepreneur confidence index of the manufacturing industry both rose, indicating that the Chinese economy has begun to stabilize and recover in some fields, according to Wen. And fourthly, the market confidence went up and the economy became more active over the first three months, with increases in both the stock market and housing market transaction volumes. The positive performances in economic fields suggest that the policies adopted by the central government of China have been timely and correct, and have led to successes, the premier noted. The premier was here to attend the Association of Southeast Asian Nations (ASEAN) related summits. The Chinese premier went back home late Saturday ahead of schedule, after the Thai government postponed the summits because of domestic political unrest. The premier said we should see that China's economy is still facing very serious hardships, which can be attributed to the shrink of external demand and a relatively sharp fall in exports. This has negatively impacted export enterprises, export-oriented industries and export-oriented zones, and has resulted in decreases in business profit making, declines in financial revenues and heavier pressure on employment, he said. As the international financial crisis is deepening and spreading, we should never lose vigilance, Wen warned. As the crisis has not touched its bottom, we can hardly say that the Chinese economy alone has got out of the crisis. China cannot save the world, nor can it survive without the world, Wen said. What we should do is to exert our utmost efforts to minimize the effect of the crisis, he said. When answering questions whether China will introduce additional economic stimulus plans, Wen said the government should now step up efforts to carry out the policies and measures of the existing stimulus package. The earlier they are put into effect, the more beneficial and active they will be, he said. Firstly, it is imperative to release the additional investment for stimulating the economy that has been included into the budget. Secondly, specific rules for reforming and reviving a total of ten key industries should be formulated as early as possible. And thirdly, efforts should be made to speed up the development of the social security system, Wen said, adding that the national medical and health-care system reform launched in recent days, which has drawn international attention, should be implemented as early as possible. At the same time, it is essential to closely follow up the changing economic situation at home and abroad, and hammer out new response plans whenever necessary, said Wen. Priority should be given to strengthening social security, improving the people's livelihood and strengthening protection of the ecological environment, he said. In response to questions about the trial of cross-border trade deals in the Chinese yuan, Wen said the central government has decided to test the program in the city of Shanghai, as well as four cities in south China's Guangdong province -- Guangzhou, Shenzhen, Dongguan and Zhuhai. Hong Kong and Macao will be included in the pilot program, and ASEAN members will become the first group of foreign countries to benefit from the scheme, Wen said, adding the regulatory documents governing the pilot program will be issued in a short time, Wen said. The program will promote Hong Kong's trade development, and will help its enterprises, including those in the Pearl River Delta region and other areas in the Chinese mainland, to stave off the risks from exchange rate fluctuations, he said. This will invigorate Hong Kong's financial industry and underpin its position as an international financial hub, he added. Wen said that compared with developed countries, China, as a developing country, has undergone only a short period of time in its financial reform and development, lacking both experience and talented people, and there is also room for improvement in its financial system. At present, China allows the yuan to become convertible under the current account and it will take a long time to realize full capital account convertibility for the Chinese yuan, he said. Answering a reporter's question on whether building Shanghai into an international financial hub will rival Hong Kong's financial status, Wen said the Chinese central government has always paid close attention to the development of Hong Kong's financial sector. "I noticed that most of the media in Hong Kong showed support for the decision to build Shanghai into an international financial center, but lingering worries still remain," he said. Actually, the status of an international financial center is established not by a government decision but through market competition, he said. "I have said years ago that Hong Kong's status as an international financial center is irreplaceable due to its unique geographical advantage, a long history of financial management, extensive channels of financial operation, a full-fledged legal system and a rich pool of financial expertise," Wen said. However, Hong Kong's status as an international financial hub also meets challenges, he said. He added that what is imperative for the time being is to enhance regulation, maintain the stable, healthy and sustainable development of its financial sector, and to make due support for its economy. While developing the financial sector, Hong Kong should also spare no effort to tap the potential of its economic growth such as logistics, tourism, the health sector, science and technology, education, and high-tech industries, so as to lay a foundation forthe sustained economic development, he said. Responding to a question about the recent police investigation into Hong Kong-listed conglomerate CITIC Pacific, Wen said the issue should be addressed in accordance with the laws and financial supervision regulations of the Hong Kong Special Administrative Region, and no interference from the mainland or other parties will be allowed. Earlier this month, Hong Kong police searched the headquarters of the company, which reported huge losses from unauthorized hedging against changes in the exchange rates of Australian dollar last year. After all the facts are clarified, serious lessons should be drawn from this incident, including the company's management and its supervision, Wen said. On Macao's economic growth, Premier Wen said it has a unique economy powered mainly by its gambling industry. As the region continues to develop its gambling industry, efforts should be made to promote the region's economic diversity based on its own reality, he said. Macao's development is somewhat restrained due to its tiny area, but the central government is currently working on a long-term development plan of the Pearl River Delta to strengthen economic ties between Guangdong Province and Macao in an effort to promote Macao's development, said the premier. Because of Thailand's domestic situation, the Thai government on Saturday postponed the ASEAN related summits scheduled for April 11 and April 12. Wen said his visit to Thailand was designed to enhance the friendly cooperative relations between China and ASEAN and to make joint efforts with its members to tackle the global financial crisis. The Chinese premier said he had been aware of the situation in Thailand before his departure for the country, and his insistence on attending the summits indicated China's sincerity in this matter.
BEIJING, Feb. 28 (Xinhua) -- The global financial crisis has not yet hit bottom and its impact is still spreading, said Chinese Premier Wen Jiabao during his first-ever online chat Saturday. He also promised that China is "ready to take firmer and stronger actions whenever necessary." The major impact of the crisis is on the country's real economy instead of its financial sector, which after more than 10 years of reform, is relatively stable and healthy and capable of withstanding the crisis, he said. Wen said China's east coastal areas were hit hard, where the economy is more export-dependent and labor intensive. The decline of international market demands also caused the unemployment of a great number of migrant workers. Chinese Premier Wen Jiabao prepares to chat with Internet surfers on two state news portals in Beijing, China, Feb. 28, 2009 China's gross domestic product (GDP) grew 9 percent year-on-year last year, the lowest since 2001, when an annual rate of 8.3 percent was recorded. To cushion the blow of the international financial crisis, Wen said China announced a package of stimulus plans covering four aspects. The first is the announcement a 4-trillion-yuan (588 billion U.S. dollars) economic stimulus and tax cuts. The second involves revitalizing ten key industries. The third is technical upgrading. The fourth is the building of a comprehensive social security network. INITIAL RESULTS, BUT TEMPORARY Wen said "the stimulus measures have shown initial effects and produced good results in certain areas and fields." For example, the country has seen consecutive growth in credit supply, with new loans standing around 440 billion yuan in November, 770 billion yuan in December and 1.63 trillion yuan in January, Wen said. He also cited figures on stronger retail sales and the rebound of power generation and use. Consumption rose 18 percent year-on-year in January, while power generation in the Feb. 11-20 period increased 15 percent year-on-year, or up 13.2 percent from the first ten days of this month, he said. "Some key indicators showed the economic situation has somewhat turned better," he said. "But those were just temporary indices and couldn't be fully compared with the past figures." Wen said one indicator he valued most was power generation. "Starting from mid February, power generation and consumption have both resumed growth," he said. "We must fully realize we are facing a long-term and arduous task," he added. "We must strengthen confidence in the face of the crisis and be ready to take firmer and stronger actions when necessary." CONCERNS ON EMPLOYMENT, INCOME GAP AND PROPERTY Wen said migrant workers had been hit the hardest during the financial crisis. About 20 million migrant workers in China had returned to the countryside from cities without jobs, said Chen Xiwen, director of the office of the central leading group on rural work, early this month. Other government officials estimated the number at 12 million. Wen acknowledged the accurate number is yet to be counted. He said migrant workers did not complain about the government and quietly returned to their hometowns, "some engaging in farming again, others still seeking jobs." "I want to take the opportunity to extend my gratitude to our migrant workers," he said, adding they had made great contributions to the nation. The government should encourage them to start their own business by offering tax stimulus and training opportunities, said Wen. He also expressed deep concerns over the employment issue of college students and jobless urban families. "Employment is not only related to one's livelihood but also one's dignity," said Wen. China's State Council, or the cabinet, issued a notice on Feb. 10 urging governments at all levels to make every possible effort to expand employment. When answering netizens' concerns over income discrepancies, Wen said narrowing the rich-poor gap could not be achieved "in a static state" and should be conducted alongside with economic development. He acknowledged that China's social and economic development does have the problem of "imbalanced, discordant and unsustainable" growth. The major problem is the imbalance between different regions, between the urban and rural areas and income imbalance, he said. Meanwhile, Wen said he still has confidence in China's economy and the development of Chinese enterprises. In a reply to complaints over the slumping stock market, he said he is confident about the capital market as its performance is decided by economic fundamentals and company profitability. The government has the responsibility to establish an open, fair and transparent market environment and resolutely fight against illegal acts such as manipulating the market, he said. Housing prices were among the most frequently asked questions raised by netizens during the chat. In response, Wen said he hopes to see a stable and healthy development of the country's real estate sector in the face of the global financial crisis. China should strengthen management and regulation to keep housing prices and the scale of property construction "at a reasonable level", said Wen. Housing prices have long been under fire in China, as consumers complain houses in large cities are too expensive to afford, giving developers unfair huge profits. Wen said the government highly values the property industry as it concerns the life of ordinary people and directly affects the national economy. The government has urged for stronger confidence in the real estate market while pledging more money and energy to meet the needs of low-income families, he said. The government fund must be used properly to ensure house construction is economical, safe and of good quality, said Wen. He also noted the construction should save land and suit people's needs. "Auditing and supervision should go along with all property projects," said Wen. "Problems must be dealt with whenever they emerge." Property prices in 70 major Chinese cities fell 0.9 percent in January from a year earlier, a faster fall than the previous month. In December, the figure saw the first year-on-year drop since the government started to release it in 2005.

BEIJING, April 15 (Xinhua) -- China and New Zealand should work together to deal with the international financial crisis, said Chinese Premier Wen Jiabao on Wednesday. "This would benefit both countries and the region as well," Wen told visiting New Zealand Prime Minister John Key. Chinese Premier Wen Jiabao (R) shakes hands with New Zealand's Prime Minister John Key at the Great Hall of the People in Beijing, capital of China, April 15, 2009. Wen said Sino-New Zealand relations was "at its best in history." adding to the Free Trade Agreement (FTA) signed last October has greatly boosted bilateral trade and economic cooperation and brought about concrete benefits to the two peoples. Wen proposed the two countries continue high-level exchanges of visits to improve political trust. Chinese Premier Wen Jiabao (front L1) welcomes visiting New Zealand's Prime Minister John Key (front L2) at the Great Hall of the People in Beijing, capital of China, April 15, 2009He urged the two sides to use the advantage of the FTA to expand cooperation in the areas as agriculture, forestry, stock raising, environmental protection, clean energy and food safety. Wen also called upon the two countries to promote personnel exchanges and coordination in the international organizations. Key said New Zealand remains committed to developing relations with China and would take the chance of implementing the FTA to expand bilateral cooperation in agriculture, stock raising and science and technology. The prime minister said New Zealand and China should stand firmly against trade and investment protectionism and advance the Doha round of negotiations. After the talks, the two leaders witnessed the signing of agreements on cooperation in information and tourism. Key is to head to south China's Hainan Province for the 2009 meeting of the Bo'ao Forum for Asia (BFA) from April 17 to 19.
BEIJING, April 12 (Xinhua) -- The Chinese government's proposals for strengthening cooperation with the Association of Southeast Asian Nations (ASEAN) show that China remains fully confident about the prospects of China-ASEAN cooperation. During a meeting in Beijing with envoys of the 10 ASEAN countries, Chinese Foreign Minister Yang Jiechi briefed them about the Chinese government's proposals for enhancing China-ASEAN cooperation in an all-round way. Yang has just returned home from Thailand late Saturday where scheduled ASEAN meetings were postponed due to domestic unrest in that country. Chinese Foreign Minister Yang Jiechi (C) meets with envoys of 10 members of the Association of Southeast Asian Nations (ASEAN), in Beijing, capital of China, on April 12, 2009.China's proposals for strengthening its cooperation with ASEAN include the signing of an investment agreement. The agreement, which was scheduled to be signed during the scheduled meetings, would be conducive to the establishment of the China-ASEAN free trade area. This demonstrates that that the series of relevant measures China has already decided to adopt will remain unchanged and that China has full confidence in the future of China-ASEAN friendly cooperation, despite the postponement of ASEAN meetings. Strengthening and deepening cooperation is the common wish of the two sides, and is also an important avenue for fighting protectionism and enhancing their ability to resist risks in the current economic circumstances. As close neighbors, China and ASEAN countries have enjoyed increased cooperation in various areas. In the face of the global financial crisis, it has become the consensus of both sides that they should work together to ride out the present difficulties. Expanded cooperation between China and ASEAN will help augment their ability to tackle the crisis. Making joint efforts to push for the signing of an investment agreement displays the determination of both sides to promote trade and investment liberalization, fight protectionism and achieve a win-win result. Furthermore, the China-ASEAN free trade area, to be completed in 2010, will play an important and profound role in further strengthening China-ASEAN relations and boosting cooperation in the whole of East Asia. China and ASEAN countries are close and friendly neighbors. The key to continued development of bilateral relations lies in mutual trust, confidence and unremitting efforts. Only with that can the two sides enjoy solid cooperation and join hands in achieving sustainable development.
BOGOTA, Feb. 16 (Xinhua) -- Visiting Chinese Vice President Xi Jinping and his Colombian counterpart Francisco Santos agreed here on Monday that bilateral cooperation is to be strengthened as several agreements were signed. During talks with Santos, Xi said China and Colombia should continue the deepening of mutual political trust and exert efforts to increase cooperation in terms of commerce and investment. Colombian Vice President Francisco Santos (R) meets with his Chinese counterpart Xi Jinping in Bogota Feb. 16, 2009.The Chinese and Colombian vice presidents signed several agreements on collaboration in fields of economy, technology and finance after the meeting. China and Colombia, both developing countries, have achieved remarkable progress in bilateral relations, with deepening political mutual trust and widening pragmatic cooperation, Xi said. Visiting Chinese Vice President Xi Jinping (2nd R Front) holds talks with his Colombian counterpart Francisco Santos (2nd L) in Bogota, capital of Colombia, Feb. 16, 2009.On the development of the bilateral relations, Xi said the peoples of China and Colombia enjoy traditional and bosom friendship and the two governments have attached great importance to the development of the bilateral ties and are determined to further strengthen bilateral cooperation. Xi also said that the two sides, with a mutual understanding over each other's concerns, have timely exchanges of opinions on important matters of common interest. Colombia adheres to the one-China policy over issues concerning Taiwan and Tibet, which China highly appreciates, Xi added. Xi said that the world is experiencing complicated and profound changes, especially in such moments as the global financial crisis expands, which, according to him, should be withstood with joint efforts. He, on behalf of the Chinese government, invited national enterprises to amplify business and investment in this South American country, and welcomed Colombia to further promote friendship and cooperation through the platform of World Expo Shanghai 2010. Xi flew in the Colombian capital city Sunday afternoon from northern port Cartagena, where he met with Colombian President Alvaro Uribe on bilateral ties. He will conclude his official visit to Colombia Monday evening and continue his six-leg tour to Venezuela. The trip has already taken him to Mexico, Jamaica, and he will head towards Venezuela, Brazil and Malta.
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