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BEIJING, March 23 (Xinhua) -- Chinese Premier Wen Jiabao on Monday met with foreign delegates at the 10th China Development Forum, calling on international efforts to combat the financial crisis. "Only when each nation makes effective stimulus measures together can the world economy step out of difficulty and realize resuscitation," Wen said to more than fifty foreign delegates at the three-day China Development Forum that started Saturday. Chinese Premier Wen Jiabao (R Front) meets with foreign delegates to the China Development Forum 2009 at the Great Hall of the People in Beijing, capital of China, March 23, 2009. China has launched plans to expand domestic consumption and promote economic growth. It will try its best to achieve the goal of eight-percent economic growth set for this year, according to Wen. With timely efforts, the economy in some areas and industries in China is now witnessing better signs, Wen said. "China can't achieve self-development without rest of the world," the Premier said, adding that China hopes to deliver confidence to the world and the world should have faith in the country. Sponsored by Development Research Center under the State Council, or China's cabinet, the China Development Forum was founded in 2000. It aims to support and promote policy consultation and academic research in China. High-level officials, entrepreneurs, scholars and leaders from international and non-governmental organizations attended this year's forum with the theme of China's Development and Reform in the Global Financial Turmoil.
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. 13 -- Chinese banks issued 1.62 trillion yuan (7 billion) in new loans in January, up 101 percent year-on-year, prompting some economists to say the government might not cut interest rates for the time being to boost the economy. The massive jump in lending is equal to about one-third of the loans issued in the whole of 2008, a year that began on a generally tight credit line, the central bank said yesterday. M2, which includes cash and all types of deposits and indicates overall liquidity in the financial system, grew in January, too, by 18.8 percent year-on-year. It increased 17.8 percent in December. The massive growth in lending comes at a time when banks are rushing to cherry-pick the juiciest stimulus-package projects, especially major infrastructure ones that need long-term investment, the economists said. Chinese banks issued 1.62 trillion yuan (7 billion) in new loans in January, up 101 percent year-on-year The government announced a 6-billion package on November 9 to boost domestic demand and shore up investment. Though the central government will shoulder one-third of the cost, banks will play an important role in financing the construction of bridges, railways and highways. "The banks are fighting for the best projects in the government's stimulus package," said Ha Jiming, chief economist of China International Capital Corp. "It's not surprising to see that an array of the deals were sealed in the past month." "The massive lending growth minimizes the need to further cut interest rates heftily," said Lian Ping, chief economist with Bank of Communications. "The liquidity problem should ease with such a growth." The central bank has cut the benchmark lending rate by 2.16 percentage points in the past four months and reduced the deposit reserve requirement ratio in order to ensure there's enough liquidity in the market to boost the economy. The growth in lending could also prove to be a blessing for cash-strapped domestic enterprises trying to stay afloat amid shrinking overseas demand and waning consumer confidence. Central bank figures show bill financing, which supplies working capital, accounted for 39 percent of the new loans. Medium and long-term corporate loans made up 32 percent. "It (growth) reduces the default risks of domestic firms, which in turn eases worries over bank asset quality at least in the short term," said Sun Mingchun, an economist with Nomura International. The economists said the dramatic rise in lending could be partly attributed to pent-up demand for loans last year. The central bank had imposed a curb on lending till November last year to combat inflation and prevent the economy from overheating. That left "many firms, especially small- and medium-sized ones, facing a severe cash flow problem", Sun said. Policymakers lifted the curb in November and raised the target for M2 growth to 17 percent for 2009, up from 16 percent that had been in practice since 2006. The move is expected to ensure there's enough liquidity in the market to spur investment and boost the economy, whose growth dropped to a seven-year low of 6.8 percent in the fourth quarter last year. "Credit expansion in the first quarter of this year is expected to be very high because banks can maximize investment returns by front-loading new loans," said Jing Ulrich, managing director and chairwoman of China Equities at JP Morgan. But Ulrich cautioned against a possible rise in credit risk because the increase in liquidity could cause a sharp rise in banks' non-performing loans.
BEIJING, April 10 (Xinhua) -- Chinese Vice Premier Li Keqiang said here Friday that the basic health-care system should be provided as a public service to the people to ensure and improve people's livelihoods. Li made the remarks during a meeting on deepening the reform of the health-care system, stressing that the public health-care system should be conducted for public good and urging the gradual establishment of a basic health-care system to cover all Chinese citizens. Carrying out the health-care system reform is of great significance to improving people's livelihoods and promoting social harmony, as well as boosting domestic demand and keeping a sound and rapid economic development, Li said. The reform of the health-care system is a social systematic project, which is time-consuming, challenging and complicated, he said. By 2020, China should have a basic health-care system that covers urban and rural residents, Li pointed out. Health-care reform in the next three years should be focused on relieving people from expensive and hard-to-get medical care, he said. Li also said that reforms should be carried out in five areas, including providing universal access to basic health insurance, introducing an essential medicine system, improving primary healthcare facilities, offering equitable access to basic public health services and establishing pilot reform of state-run hospitals.
BEIJING, March 27 (Xinhua) -- Chinese President Hu Jintao said here Friday that the "good situation" in today's Tibet was "hard-earned and should be highly cherished." Hu said during his visit to an exhibition marking the 50th Anniversary of Democratic Reform in Tibet, at the Cultural Palace of Nationalities in Beijing, that the reform 50 years ago was "the most extensive, profound and progressive social transformation in the history of Tibet." All the nine members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee visited the exhibition, including top legislator Wu Bangguo, Premier Wen Jiabao, and top political advisor Jia Qinglin. Chinese President Hu Jintao, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, visits an exhibition marking the 50th Anniversary of Democratic Reform in Tibet, at the Cultural Palace of Nationalities in Beijing, capital of China, on March 27, 2009 The exhibition, opened on Feb. 24, 2009, showcases archives, cultural relics, photos, videos, and restored landscapes that have recorded the great changes Tibet has gone through since 1959, when serfdom was abolished. The exhibits show that Tibet has been a part of China since the Yuan Dynasty (1271 to 1368 A.D.). Also exhibited are scenes of surfs being exploited by their owners in the old times and how they were liberated 50 years ago. The exhibition puts on videos recording the March 14th Riot in Lhasa last year and the major projects the Chinese government has sponsored in the plateau, such as the Qinghai-Tibet Railway and the Tibet Gymnasium. It also includes photos about Tibetan people's lives today. When visiting the exhibition, Hu stressed that, only by staying in the big family of the motherland under the leadership of the CPC, can the economy and society of Tibet develop by leaps and bounds, and the people of Tibet be the owner of the country together with other Chinese ethnics. Tibet should speed up economic development and further improve the living standards of people living there, especially the peasants and herdsmen, Hu said. Hu also said that Tibet should move from being "basically stable" to "peaceful and stable in the long run." The exhibition, co-organized by the State Council Information Office, the State Ethnic Affairs Commission and the Tibet Autonomous Region, has attracted about 137,000 visitors since its opening.