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          CHINA> National
          Wen: China confident of weathering financial crisis
          (Xinhua)
          Updated: 2009-02-02 21:33

          LONDON -- Chinese Premier Wen Jiabao told the Financial Times on Sunday that based on a scientific attitude and pragmatic view he is confident China will weather the global economic crisis.

          Chinese Premier Wen Jiabao (R Front) meets with overseas Chinese and send greetings to them for the Chinese lunar New Year in the Chinatown of London Jan. 31, 2009. Chinese Premier Wen Jiabao arrived in London on Jan. 31 for a three-day visit to Britain. [Xinhua] 

          The confidence, Wen said, comes from a correct judgment of the current situation. He also credited China's robust material foundation and the strong economic system that his country has established during the past 30 years of reform and opening-up.

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          In addition, Wen said China has confidence because of its stable and sound financial market, broad market potential and leeway to deal with the crisis.

          Most importantly, Wen told the newspaper, China has confidence that it will weather the financial storm because of the government's swift and powerful measures to decisively deal with the situation.

          Asked if the Chinese effort is big enough, Wen said a large-scale stimulus plan is a must to cope with the crisis, but the measure should be integrated and comprehensive. It also should address both the symptoms and the root causes with a view of both the short and long terms, Wen said.

          Wen said China's package of initiatives fit into five categories: One, enlarging domestic demand; Two, adjusting and boosting industry; Three, promoting technological upgrading; Four, building up a more comprehensive social welfare system; and Five, stabilizing the fiscal market to bolster the economy.

          Referring to the initiatives worth 4 trillion yuan (US$585 billion) that the government has already announced, Wen said the money will be invested over the next two years to enlarge domestic demand, and consumer spending in particular.

          A total of 600 billion yuan (US$88 billion) will be used to speed up technological upgrades while another 850 billion yuan (US$124 billion) will be earmarked for advancing medical care reforms.

          The crisis has not touched bottom yet, so the government will pay close attention to changes in the situation and take new measures in time to stimulate growth before it deepens into a prolonged recession, Wen said.

           

           

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