Chinese Premier deeply worried about world economy
18/3/2008 17:34
Chinese Premier Wen Jiabao said today he was deeply worried about the
world economy, vowing to take flexible and prompt measures amid the changing
economic environment.
"I myself watch very closely the development in the
world economy and the US economy, and I'm deeply worried," said Wen at a press
conference after the annual session of the National People's Congress (NPC), the
top legislature.
He attributed the recent fluctuations of world stock markets
to the US sub-prime crisis, which led to the depreciation of the US dollar and
interest rate cuts by the US government, as well as high international oil
prices.
"What concerns me now is that the US dollar is depreciating
continuously, when the US dollar will reach the bottom in this depreciation
process, what kind of monetary policy the US government will adopt and where the
US economy is heading." said Wen.
He said China's monetary and fiscal
policies were based on the country's own reality but the government would keep
close eyes on latest world economic trends and make flexible, prompt reactions
to future changes.
"China's economy is already tied to the globalized
economy," said Wen. "All kinds of changes and fluctuations in the international
economy will inevitably be reflected on China's own economy."
China has
adopted a tight monetary policy and prudent fiscal policy to address the
excessive growth rate of investment, money supply, credit and trade surplus,
said Wen.
The effects of the government's economic policies would only be
seen in the mid-term and long-term context, not within a short span of one or
two months, said Wen.
Chinese share prices continued losing this morning, as
the benchmark Shanghai Composite Index fell 68.21 points, or 1.79 percent, to
3,751.84 after a 3.6-percent plunge yesterday amid lingering concerns over
possible interest-rate hikes and panic from the US sub-prime mortgage woes.
Xinhua
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