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BEIJING, Dec. 27 (Xinhua) -- China will maintain its pro-active fiscal policy and moderately loose monetary policy to buoy the economy in 2010 as many uncertainties persisted at home and abroad, Chinese Premier Wen Jiabao said Sunday. Averting the trend of falling global demand remained difficult, Wen said in an exclusive interview with Xinhua. "Economies of some countries are starting to pick up, but fluctuations are still possible," Wen said. "China's economy has been on track for recovery. However, the economic performance and operations of enterprises still mainly rely on support from government's policies," Wen said. "A consolidated recovery in the country's economy does not point to a complete revival and a full revival does not mean China's economy is developing in a sustainable way," Wen said. Chinese Premier Wen Jiabao smiles during an exclusive interview with Xinhua News Agency at Ziguangge building inside Zhongnanhai, an office compound of the Chinese central authorities at the heart of Beijing, capital of China, Dec. 27, 2009 "To withdraw macro-economic policies too early will likely ruin the efforts made before and reverse economic development," Wen said. The government would maintain the stability and continuity of macro-economic policies while comprehensively watching the domestic and foreign economic situations, Wen said. The State Council, or the Cabinet, announced on Nov. 5, 2008, that the government would shift the fiscal policy from "prudent to pro-active" and the monetary policy from "tight to moderately loose" to stimulate the economy by expanding domestic demand to offset a slump in exports. The Cabinet also unveiled a 4-trillion-yuan (585.6 billion U.S. dollars) stimulus package the same day. "We have stabilized economic growth and employment and maintained social stability over the past year," Wen said. "The government's economic stimulus package has proved effective." China's economy grew 8.9 percent in the third quarter, the fastest rate in a year, after expanding by 7.9 percent in the second quarter and 6.1 percent in the first three months, boosted by the massive government investment and record bank lending. The People's Bank of China, the central bank, scrapped lending limits of commercial banks in November last year. In the first 11 months of this year, new bank loans hit 9.21 trillion yuan, an increase of 5.06 trillion yuan over the same period last year, far exceeding the full year target of 5 trillion yuan the government set in March. The government pledged at the Central Economic Work Conference earlier this month that it would stick to the pro-active fiscal policy and moderately loose monetary policy in 2010 to sustain a recovery backed by the stimulus package. The government would adjust macro-economic policies in line with the changing economic situation and study issues arising during implementation of such policies, Wen said. China would gear more investment to social welfare, technical innovation and energy conservation and emission cuts next year, Wen said.

BEIJING, Dec. 10 (Xinhua) -- China on Thursday warned that the rich nations should not "shift and shirk" responsibility on climate change, and urged them to provide developing countries with funds to deal with the global issue. "According to the United Nations Framework Convention on Climate Change (UNFCCC), developed countries have responsibility to offer financial support to all developing countries on mitigating and adapting to climate change," Foreign Ministry spokeswoman told a regular news briefing. "Funding is one of the key issues that will determine the success or failure of the Copenhagen conference. The offer of funds is the unshirkable responsibility of developed countries," said Jiang. The UN Climate Change Conference, which opened Monday in Copenhagen, gathered representatives from 192 countries and aimed at mapping out a plan for combatting climate change from 2012 to 2020. Financial support is a key issue at the talks. Reports has quoted Todd Stern, U.S. special envoy for climate change, as saying that the United States would contribute to a fund aimed at helping developing nations deal with climate change, but China would not be a recipient of financial aid as it had a booming economy and large foreign exchange reserves. "We hope that developed countries can positively respond to reasonable requests and suggestions from developing countries, demonstrate political sincerity and fulfil their obligations rather than shift and shirk responsibility," said Jiang. "We hope the relevant parties make efforts to make the Copenhagen conference achieve results acceptable to all sides," Jiang said.
NAIROBI, Dec. 5 (Xinhua) -- The UN environmental agency UNEP Saturday hailed China's commitment to the fight against climate change and the recently-announced measure to render assistance to African countries in clean energy development. China's State Council announced on Nov. 26 that China is going to reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared with the level of 2005. "China's announcement has assisted in triggering fresh momentumin the days running up to the crucial UN climate convention meeting in Copenhagen. It underscores China's determination to continue and accelerate the decoupling of CO2 emissions from economic growth," said Nick Nuttall, spokesman for the office of UN Environment Programme (UNEP) executive director. He noted that China's announcement, alongside commitments and pledges by other countries or blocs like the European Union, Brazil, Mexico and the Republic of Korea, is bringing the opportunity of a decisive agreement in the Danish capital this month far closer than perhaps was the case only a few months ago. "China is one among several nations that has increasingly recognized that development in the 21st century and environmental considerations are not a contradiction, but can be mutually supportive in terms of generating growth and jobs for a healthy, prosperous and stable society," said Nuttall in an exclusive written interview with Xinhua. With regards to the new measures announced by China last month to assist Africa with clean energy projects, the spokesman termed it as "timely". "Africa is the continent that is the least one responsible for climate change, yet it remains the most vulnerable and also has an especially important need for energy with many of the two billion people without access to electricity living in Africa," Nuttall stressed. "The decision (of China) to support 100 projects can assist Africa in economic development and diversification in terms of sectors and wider-employment prospects while assisting towards a more sustainable path," said he, "So in terms of fighting poverty, accelerating development and combating climate change, China's announcement to assist Africa is welcome news." At the fourth ministerial conference of the Forum on China-Africa Cooperation in the Egyptian resort of Sharm el-Sheikh earlier last month, the Chinese government proposed to establish a China-Africa partnership in addressing climate change, as one of the eight new measures to strengthen the cooperation between the two sides in the next three years. Senior officials' consultations with African countries will be held from time to time in this field, while cooperation will be enhanced on satellite weather monitoring. Development and utilization of new energy sources, prevention and control of desertification and urban environmental protection will also be boosted. China has also decided to build 100 clean energy projects for Africa covering solar power, bio-gas and small hydro-power. The spokesman also expressed optimistic about the upcoming Copenhagen conference, "While there is a great deal to be done in Copenhagen to realize a decisive and equitable agreement, there is now a real chance that the UN climate convention meeting can be a success." He also listed several tests which will be faced with by the participates of the crucial meeting, like whether it can agree on a deal that reflects the science of the Intergovernmental Panel on Climate Change, or in other words, whether it can set the stage for a 25 percent to 40 percent emission reduction by 2020 and deeper cuts beyond. The funding was also a bottleneck in the bid to strike a pivotal deal in the meeting. Nuttall elaborated by identifying as a test whether "Copenhagen can develop a global financial partnership in which developing economies are given sufficient resource to adapt to the climate change already underway while being assisted towards a low carbon path". According to UNEP estimates, sums of perhaps 100 billion U.S. dollars a year by 2020 may be needed and there needs to be a quick start fund of several billion dollars almost immediately. Meanwhile, other elements need to be put in place including action that recognizes the mitigation and adaptation role of ecosystems like forests which will be increasingly important in terms of their role in delivering water supplies and stabilizing economically-important soils against extreme weather events, Nuttall told Xinhua. UNEP's recent Blue Carbon report estimated that around half of all the world's transport emissions are being captured and locked away by sea grasses, mangroves and salt marshes. "Copenhagen could and must be the start of a really new and more creative development path for six billion people, rising to nine billion by 2050," Nuttall said determinedly. The Copenhagen climate summit is scheduled for Dec. 7-18, where representatives of about 190 countries are expected to renew greenhouse gas emissions reduction targets set by the Kyoto Protocol, the first commitment period of which is to expire in 2012. It is also expected to outline the post-2012 negotiation path.
BEIJING, Nov. 17 (Xinhua) -- The United States and China, the world's first and third largest economies, have pledged to rebalance each other's economy and move in tandem on forward-looking monetary polices for a strong and durable global economic recovery, according to a China-U.S. joint statement released here on Tuesday. The statement, issued after talks between Chinese President Hu Jintao and his U.S. counterpart Barack Obama, has climaxed the latter's first China trip since he took office in January. "China will continue to implement the policies to adjust economic structure, raise household incomes, expand domestic demand to increase contribution of consumption to GDP growth and reform its social security system," said the statement. The United States, in return, will take measures to increase national saving as a share of GDP and promote sustainable non-inflationary growth. "To achieve this, the United States is committed to returning the federal budget deficit to a sustainable path and pursuing measures to encourage private saving," it said. President Obama made it clear at an earlier press conference Tuesday afternoon that the rebalancing strategy would require America to save more, reduce consumption and reduce long-term debts. The statement also said that both sides will pursue forward-looking monetary policies and have "due" regard for the ramifications of those policies for the international economy. The two also agreed to expedite negotiation on a bilateral investment treaty, and work proactively to resolve bilateral trade and investment disputes in a constructive, cooperative and mutually beneficial manner. Recognizing the importance of open trade and investment to their domestic and the global economies, the two are committed to jointly fight protectionism in all its manifestations. "We both agreed to properly handle trade frictions between the two countries through negotiations on an equal basis, and to make concerted efforts to boost bilateral trade and economic ties in a healthy and steady way," said President Hu. "I stressed to President Obama that under the current situation, both China and the United States should oppose and reject protectionism in all forms in an even stronger stand," he said. The two sides also reiterated that they would continue to strengthen dialogue and cooperation on macro-economic policies and pledged to honor all commitments made at the first round of the Sino-U.S. Strategic and Economic Dialogue last July, the Group of 20 summits, and the recently concluded APEC Economic Leaders' Meeting in Singapore. The statement said that both sides commended the important role of the three G20 summits in tackling the global financial crisis, and were committed to work with other members of the G20 to enhance the G20's effectiveness as the premier forum for international economic cooperation. China and the United States also agreed to work through a cooperative process on mutual assessment to make the G20 Framework for Strong, Sustainable and Balanced Growth a success. The statement said that both sides welcomed recent agreements by the G20 to ensure that the International Financial Institutions (IFIs) have sufficient resources and to reform their governance structures. "The two sides stressed the need to follow through on the quantified targets for the reform of quota and voting shares of IFIs as soon as possible, increasing the voice and representation of emerging markets and developing countries in these institutions consistent with the Pittsburgh Summit Leaders Statement," it said.
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