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Wen: We are firm on IPR protection

(China Daily)
Updated: 2006-09-07 08:37

"We have full confidence in our ability to do so."

Moreover, China's 1.3 billion-strong population meant it had a huge potential market.

"Expanding domestic demand is a basic policy guiding China's economic development," Wen said.

On currency revaluation, he said the country plans no "surprise adjustment" in the yuan's exchange rate.

"The floating of the renminbi exchange rate will be mainly determined by market supply and demand and its flexibility will be increased gradually," Wen said.

The yuan has risen by about 2 per cent against the US dollar since July 21, 2005, when Beijing revalued the currency by 2.1 per cent and revised its trading system to link the yuan's value to a basket of major currencies instead of just the greenback.

On political reform, the premier said direct elections for higher levels of office must come gradually and only after lower levels can manage themselves.

"China is a large country with a vast population, a weak economic foundation and unbalanced development in different regions," Wen said.

"The conditions are not yet ripe for conducting direct elections for the higher levels of government," Wen said.

"Democracy and direct elections, in particular, should develop in an orderly way in tune with the particular conditions of a country.

On the nuclear issue, Wen called for committed diplomatic efforts to resolve the standoff on both the Korean Peninsula and Iran.

"Our goal is to bring about a peaceful resolution to these issues. But imposing sanctions will not necessarily get us there, and may even prove counter-productive," he said.

Wen urged the parties involved to be cautious about moving towards sanctions.