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BEIJING, March 5 (Xinhua) -- Chinese Premier Wen Jiabao Thursday called on the nation to strengthen "conviction for victory" as he unveiled an unprecedented stimulus package to shore up economic growth amid global downturn.     In a work report to the National People's Congress (NPC), the country's parliament, Wen said China is facing "unprecedented difficulties and challenges" as economic growth slows, employment pressure mounts and social uncertainties increase in 2009, the most difficult year since the new millennium.     PREMIER'S ECONOMICS     China's economy cooled to a seven-year low of 9 percent last year, and broke a five-year streak of double-digit expansion, as the global financial crisis took its toll on the world's fastest growing economy.     The country, however, is "able to achieve" an economic growth at about 8 percent as long as right policies and appropriate measures are adopted and implemented, Wen said. Chinese Premier Wen Jiabao delivers a government work report during the opening meeting of the Second Session of the 11th National People's Congress (NPC) at the Great Hall of the People in Beijing, capital of China, March 5, 2009In his report, Wen outlined an aggressive stimulus package, including huge government investment, tax reform, industrial restructuring, scientific innovation, social welfare and promoting employment.     In addition to a 4-trillion yuan (585.5 billion U.S. dollars) stimulus package that was announced in November, the premier also proposed a budgeted fiscal deficit of 950 billion yuan (139 billion U.S. dollars) for 2009, a record high in six decades and nearly three times over the last record of 319.8 billion yuan set in 2003.     The deficit accounted for less than 3 percent of the gross domestic product (GDP), nearly surpassing an internationally accepted risky line.     Wen said increasing government spending is the most active, direct and efficient way to expand domestic demand, while economists believe China's 2-trillion U.S. dollar foreign reserves, current-account surplus and budget surplus offers the government lots of room to do so.     Other key economic and social targets included creating more than 9 million jobs in the city, controlling urban registered unemployment rate under 4.6 percent and keeping the rise of Consumer Price Index (CPI) at about 4 percent.     EXPECTATIONS OF A MIGRANT WORKER AND MORE     While nearly 3,000 lawmakers convened at the Great Hall of the People in the center of Beijing, Zhang You, a migrant worker from central Anhui Province who was waiting in his rented room for a job opportunity in the outskirts of the capital, also watched Wen's nationally televised speech, though the Premier's economics might be beyond his imagination.     "I didn't quite understand what those figures meant," he said. "But I was impressed by Premier Wen's vow to expand social security for migrant workers and help us find jobs," the 30-year-old man said. "I am happy about that."     Zhang, a painter, said he has had no work to do for months. "I guess it's because fewer people are buying houses," he said. China's real estate sector was also hit by the international financial crisis with fewer people buying houses.     But Zhang said he believes he will soon be able to find a job. "I feel the government is trying hard to overcome the difficulties. This kind of situation won't last long."     "I hope the economy will get better. My whole family is depending on me," said Zhang, one of the 20 million migrant workers who have lost jobs following the financial crisis.     In addition to millions of migrant workers seeking jobs in the cities, another 6.1 million college students are due to graduate this year, worsening the country's unemployment woes.     Announcing a 42-billion-yuan central government investment to boost job opportunities, Wen said in his report "the government will do everything in its power to stimulate employment."     He said the government will make full use of the role of the service sector, labor-intensive industries, small and medium-sized enterprises, and the non-public sector of the economy in creating jobs, he said.     Hao Ruyu, vice president of the Capital University of Economics and Business, said to maintain an 8 percent growth rate is "vital" to the Chinese economy and the country's stability.     "One percentage point growth could create 800,000 to 1 million jobs," said Hao, vice chairman of the NPC Financial and Economic Affairs Committee.     Despite worsening world economy, economists are optimistic about China's economic growth as previous stimulus measures have started to show initial effects.     Economist Li Yining told Xinhua that he believes China's economic growth this year could reach 8 percent, or even higher.     The Chinese economy is also very likely to recover before other major economies, even though the world economy is still shrouded in uncertainty, said Li, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), the nation's top political advisory body.     "The economic slowdown is beginning to bottom out, and the economy is bound to rebound on huge government investment," he said.     According to a survey of factories issued Monday by the brokerage CLSA, China's manufacturing activity contracted for a seventh consecutive month in February, but at a slower rate than previous months.     INVESTMENT FOR A HARMONIOUS SOCIETY     While explaining the stimulus plan, Wen said the government will "give top priority to ensuring people's wellbeing and promote social harmony."     He said a total of 908 billion yuan of the central government investment this year will go to projects aiming at improving people's life.     Those projects covered low-income housing, education, health care, culture, environmental protection, and reconstruction in regions affected by the May 12 earthquake in Sichuan Province.     As part of the efforts to shore up domestic demand, Wen said China will increase investment to improve China's social security network, whose low coverage has long been blamed for the country's high saving rate.     He said the central government plans to spend 293 billion yuan on the social safety net this year, up 17.6 percent or 43.9 billion yuan over the estimated figure for last year.     The money will be used to fund social welfare programs, including pension, medical insurance, unemployment insurance and living allowances to low-income groups.     Wen also promised that his government will improve efficiency and continue to combat corruption.     "We must discharge our duties with great diligence and, through our actions and achievements, build a government that is for the people and is pragmatic, clean, efficient to satisfy people's needs and win their trust," he said.     CHINA IMPETUS LIMITED?     As the world's fastest expanding economy, China's policy making has captured international attention since the world was hit by the financial turmoil. Before Wen delivered his report, U.S. stocks broke a five-day losing streak with the Dow Jones industrial average rising 149.82, or 2.2 percent, to 6,875.84 on Wednesday.     Some analysts said expectations on China's economic stimulus package might have contributed to the stock jump.     But Wang Xiaoguang, a Beijing-based economist, said such an influence is very "limited."     Wang said China's stimulus package might help store up some investors' confidence in world economy, but the recovery of the world depends on both China and the United States.     China's economic growth could help cushion the blows of world economic downturn, Wang said. "But if the U.S. economy continued to worsen, China alone could not revive the world," he said.

BEIJING, March 24 (Xinhua) -- Former Vice-Chairman of the Standing Committee of China's National People's Congress Raidi has said the democratic reform to abolish serfdom in Tibet was the people's own historical choice.     Raidi, a 71-year-old Tibetan who was once vice secretary of Tibet Autonomous Region's Party Committee, made the remark during an exclusive interview with Xinhua on Tuesday. People of the Tibetan ethnic group hold a celebration for the upcoming Serfs Emancipation Day, at Jiaba Village of Nedong County, southwest China's Tibet Autonomous Region, March 23, 2009. "The ** Lama clique's attempt to split the country and restore the serfdom did not, does not and will never succeed," Raidi said, adding that the Tibetan people could never enjoy human rights, freedom and democracy in a society under serfdom system.     He stressed that the Serfs Emancipation Day which falls on March 28 is an event and celebration with extraordinary meanings for Tibetan people. The reform half a century ago was a milestone which distinguishes the new Tibet with the old one and also a milestone in the world's history to abolish slavery. A resident of the Tibetan ethnic group dances in a celebration party for the upcoming Serfs Emancipation Day, at Jiaba Village of Nedong County, southwest China's Tibet Autonomous Region, March 23, 2009The ** Lama has pretended to be a pure religious figures in the past 50 years of exile but he had attacked the Party and central government and stirred unrest in Tibet by playing with outside forces, Raidi said.     To achieve their goals, the ** clique had spread all sorts of lies to beautify the region's former theocracy. On the other hand, they claimed the alleged "middle way" and "meaningful autonomy" to divert people's attention to their real intention to seek independence, he added.     "Recall the past 50 years of development in Tibet, I feel that Tibet could have a bright future and prosperity only under the leadership of Communist Party of China and in the family of socialist motherland," Raidi said.

BEIJING, March 21 (Xinhuanet) -- Against backdrop of world's financial crisis, China will play a vital role in world's economic recovery, said Murilo Portugal, Deputy Managing Director of the International Monetary Fund (IMF) on Saturday in Beijing. I think China's role is very important. Its fast growth has already made important contribution to the world economy, and it will continue playing that vital role in world's economic recovery, Portugal said on the first day of the three-day China Economic Forum 2009.     China's financial policy has long been very self-regulated and prudent. Besides, China has large quantity of foreign exchange reserves and debts equaling to 20% of its GDP. Based on that, China can make great contribution to the world economic recovery, Portugal added. Murilo Portugal, Deputy Managing Director of the International Monetary Fund (IMF) delivers speech at the academic summit of China's Development and Reform in the Global Financial Crisis of China Development Forum 2009 in Beijing, capital of China, Mar. 21, 2009. Over fifty leaders of multinational corporations, senior officials of international organizations and well-known scholars are invited to attend the 3-day forum this year which focus on the topic of China's development and reform in the global financial crisis    He went on to say that the economic stimulus plan that China unveiled last November, stipulating that the investment from 2008 to 2010 will equal 13% of its GDP, is undeniably a huge contribution to the world growth.     Portugal said that he is confident that China will achieve high positive growth this year though the growth rate will lower than last year.     China has announced a 4 trillion-yuan (585 billion U.S. dollars) two-year economic stimulus package to boost growth and domestic demand, 1.18 trillion yuan of which will be funded by the central government.     The stimulus package plan has four major components, including large-scale government spending, industrial restructuring and rejuvenation, scientific research and social safety net.     Economic recovery depends on effective measures     The IMF predicted that world economic recession will further deepen in 2009 with world's per capita GDP probably dropping 2% or even lower, and World's total GDP also slumping and other related indexes further going down, Portugal said in his speech at the forum.     He said that the economic recovery, to a large extent, depends on whether the governments of different countries can take effective measures to reform their financial institutions and systems.     He added that if the financial and monetary conditions were improved, then the world would jump out of the current crisis at an earlier date. If the signs of recovery could appear in the second half of this year or in this summer, then the world could gradually walk out of this financial crisis.     In another report, the IMF said on Thursday that the world economy is expected to contract in 2009 for the first time in 60 years as advanced economies will shrink sharply.     Global activity will contract by 0.5 to 1 percent on an annual average basis, the first such fall in 60 years, the IMF said in an analysis provided to the Group of 20 (G20) industrialized and emerging market economies.     Advanced economies will suffer deep recessions in 2009, while the United States will contract 2.6 percent, the assessment said.     Capital injection into IMF at G20     Responding to the question of capital injection into the IMF at the upcoming G20 summit in London, Portugal said the IMF had enough resources to manage the problems the world economy is facing now.     From the start of economic crisis, our credit capability is 250 billion U.S. dollars, among which we have used 50 billion dollars, so we still have 200 billion dollars left, said Portugal, adding that we hope to prepare for the worst to come, if more countries need our financial support. So far, we have got some commitments on capital injection from some countries.     He said that Japan is the first country to make such commitment. The IMF has signed the agreement with Japan, which has pledged to add 100 billion U.S. dollars to IMF's funds. We can lend the money out, said Portugal.     Ahead of the G20 summit, the United States is calling for trebling of the IMF's resources to help countries facing financial and economic problems.     In preparation for the summit, finance ministers and central bankers from the G20 agreed last weekend to boost the IMF's funding capacity, but gave no figures.

BEIJING, Feb. 23 (Xinhua) -- Chinese Vice President Xi Jinping's just-concluded Latin American and European tour has strengthened bilateral ties, broadened consensus and boosted cooperation with these countries, a senior Chinese official said Monday.     Xi's two-week trip to Mexico, Jamaica, Colombia, Venezuela, Brazil and Malta, as well as Fiji, where he made a transit stop, was pragmatic and fruitful, said Chinese Vice Foreign Minister Li Jinzhang.     SIGNIFICANT VISIT WITH FAR-REACHING IMPACT     Xi's visit to Latin America was a major Chinese diplomatic move since President Hu Jintao's trip to the region last year, said Li.     Last November, Hu traveled to Latin America for a visit that produced a broad consensus on forming a partnership of all-round cooperation with the region on the basis of equality, mutual benefit and common development. Earlier, China issued its first policy paper on Latin America and the Caribbean.     During his visit to the five Latin American nations, Xi further clarified China's policies on Latin America and stressed that China is ready to join hands with Latin American nations to further enhance cooperation and elevate China-Latin America relations to a new high, Li said.     In a speech at a seminar attended by Chinese and Venezuelan entrepreneurs, Xi raised a five-point proposal on strengthening the all-round cooperation for common development between China and Latin American nations amid the current global economic landscape.     Li described Xi's visit to Latin America as a follow-up action to push forward China's relations with the region.     The Chinese vice president's visit came before the Group of 20 summit scheduled for April in London to address the ongoing global financial crisis, Li noted.     During the trip, Xi called for a long-term perspective in planning and confidence building and urged a combination of promoting bilateral cooperation and ensuring the steady and sustained growth of China's economy. As a result, the visit has yielded remarkable results and a far-reaching political impact, Linoted.     Xi's visit highlighted China's efforts to work with these countries to tackle the financial downturn and turn the crisis into an opportunity, Li said.     Xi's trip brought him to mostly developing countries. During his visit, Xi stressed the need for developing countries to work together in tiding over the financial crisis, he said.     Xi and leaders of these countries reached broad consensus on joint efforts to achieve the UN Millennium Development Goals, tackle the challenges and seek common development, he added.     During Xi's visit, the governments and enterprises from these countries voiced their willingness to cooperate with China and welcomed China to trade with and invest in their countries and join them in exploitation of energy and natural resources and infrastructure construction. 　　VISIT TO GET ACROSS CHINA'S POLICIES ON KEY ISSUES     Xi's visit spanned three continents and two oceans. In every stop, Xi explained China's positions on key issues such as the international situation, the financial crisis, the upcoming G20 summit in London, the Doha round of trade talks as well as UN reforms.     He had in-depth exchanges of views with leaders of the host countries on enhancing cooperation and jointly tiding over the economic difficulties.     Leaders of the seven countries spoke highly of China's role in stabilizing the global economic and financial situation and promoting world peace and development.     Mexican and Brazilian leaders expressed readiness to beef up cooperation with China in international organizations and multilateral mechanisms and work together for a more fair and rational new international order, deal with financial crisis and win a greater say for the developing countries.     Colombian and Jamaican leaders appreciated China's contributions to stabilizing the world economy, saying the steady and relatively fast growth of China's economy will help other countries overcome financial crisis at an early date.     Xi also reiterated China's stance on the Taiwan and Tibet issues. The host countries all reaffirmed their adherence to the one-China policy.     The Chinese vice president welcomed the countries to participate in the Shanghai World Expo in 2010 and was given favorable responses by all. 　　FRUITFUL VISIT PACKED WITH SUBSTANTIAL ACTIVITIES     During his tour, Xi attended nearly 80 meetings, seminars, and other activities and held talks with leaders of the seven countries, exchanging views with them on bilateral ties as well as major international and regional issues of common concern.     He also witnessed the signing of over 60 cooperation documents in economy, finance, energy and mining, agriculture, infrastructure, high-tech and culture.     Xi held wide-ranging contacts with leaders of parliaments, political parties, regional leaders, and people from the media and academic communities.     Xi unveiled the first Confucius Institute in the Caribbean region, and broke ground for the Montego Bay Convention Center, a cooperation project by China and Jamaica.     Xi's visit uplifted China's relations with the seven countries, expanded their political mutual trust and strategic consensus, and deepened pragmatic cooperation, Li said. 　　BROAD PROSPECTS FOR FURTHER COOPERATION     Under the new consensus reached during Xi's visit, China and these countries will strengthen cooperation in trade, finance, energy and mining, agriculture, infrastructure construction, high-tech and culture.     The consensus laid a solid foundation for China and these countries to draw on each other's strength and achieve mutual benefit and win-win progress, Li said.     China and these countries are geographically far apart and have different social and cultural traditions, but their people have expressed an earnest wish to enhance friendship. Xi's visit served to push bilateral ties further forward, Li added.

BEIJING, March 26 (Xinhua) -- China's central bank governor has spoken highly of the government's rapid responses to the current global financial crisis, featuring decisively adopting a proactive fiscal policy and an adaptively easing monetary policy, and launching a bundle of timely, targeted and temporary policies and measures.     The prompt, decisive and effective policy measures adopted by the Chinese government demonstrates "its superior system advantage when it comes to making vital policy decisions," says Zhou Xiaochuan, president of the People's Bank of China (PBC), in an article entitled "Changing Pro-cyclicality for Financial and Economic Stability."     It is Zhou's third article published on the central bank's official website (WWW.PBC.GOV.CN) this week to discuss the issue of the current global financial crisis. His first and second articles, published on Monday and Tuesday, are entitled "Reform the International Monetary System" and "On Savings Ratio," respectively.     In the third article, the 61-year old central bank governor tries to find out the root causes for the current financial crisis, including but not limited to lessons on monetary policy, financial sector regulations, accounting rules.     The top Chinese banker says he wants to stimulate debate and discussions on some of the pro-cyclical features in the system, possible remedial measures, and how monetary and fiscal authorities can play their professional roles at times of severe market distress.     "Financial crises normally originate in the accumulation of bubbles and their subsequent bursts. Usually, economists pay a lot of attentions to pro-cyclicality on the macro level.     However, on the micro level, there are quite a number of notable pro-cyclical features embedded in the market structure today, which should be addressed as we deal with the current crisis and reform the financial system," he says.     Zhou suggests that in the current market structure, more counter-cyclical mechanisms or negative feedback loops on micro-level should be put in place to sustain a more stable financial system.     In the article, he notes that rating problems and herding phenomenon arise from outsourcing.     The global financial system relies heavily on the external credit ratings for investment decisions and risk management, giving rise to a prominent feature of pro-cyclicality, according to the central bank governor.     "Economic upswings produce euphoria and downturns generate pessimism," he says, "Many market players adopting ratings from the three agencies and using them as the yardstick for operations and internal performance assessments clearly result in a massive "herd behavior" at the institutional level."     Zhou points out that some market players seem to have forgotten that the ratings are no more than indicators of default probabilities based on past experiences but were never meant to be guarantees for the future, he says. "Once problems take place, as we have seen during the current crisis, fingers are pointed to the rating agencies," he says.     He suggests that financial institutions should try to rely more on internal rating in assessing risks.     He calls for giving full play to the professional role of authorities in maintaining overall financial stability and establishing a counter-cyclical mechanism for capital requirement     "To stabilize markets under severe stress, finance ministries and central banks need to act fast and apply extraordinary measures," he says, "Untimely or delayed response falls behind the curve and would make the outcome less than desired even if the response is correct and strong."     In modern Western societies, a prolonged political process for mandates to finance ministries or central banks often miss the best timing for action, Zhou says, adding, "We have observed such cases during the current crisis."     He suggests that governments and legislatures may consider giving pre-authorized mandates to ministries of finance and central banks to use extraordinary means to contain systemic risk under well-defined stress scenarios, in order to allow them to act boldly and expeditiously without having to go through a lengthy or even painful approval process.     "Such systematic pre-authorized mandates would put the specialized expertise of finance ministries and central banks to the best use when markets need it the most," he stresses.     The central bank governor attributes China's current success in easing the impacts of the crisis to the country's financial sector reform and ongoing macroeconomic stimulus measures     In 2003, fully aware of the systemic vulnerabilities of China's banking industry, the Chinese government made a courageous and strategic decision to restructure the four state-owned commercial banks, says Zhou, who took over as the PBC governor in late 2002.     In the article, Zhou gives a look back on the reforms of the country's major banks and security industry.     But he warns, "We should bear in mind that despite the notable achievements in banking reform, the major banks have not gone through a full business cycle and still have much to improve. An economic slowdown will be the ultimate stress test for the robustness of the banks' strengths."     According to the bank governor, irrespective of China's sound financial sector, the Chinese economy, especially the export sector, has felt the impact brought by the slowdown of the global economy.     He praises the Chinese government for its plans to stimulate domestic demand and promote stable and relatively rapid economic growth, including the extra investment of 4 trillion yuan (685 billion U.S. dollars) in over two years, the ten measures to revitalize the industrial sectors, and other bolster measures to increase money supply, promote employment, reform taxes and medical and healthcare system.     "Having taken the above-mentioned measures, China expect to maintain stable economic growth by boosting domestic demand and reducing dependence on external demand, thus serving as a stabilizing force in global economy," Zhou says.     In overall, the macroeconomic measures have produced preliminary result and some leading indicators are pointing to recovery of economic growth, indicating that rapid decline in growth has been curbed, he concludes.