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Wen upbeat about China growth, stresses confidence

(Xinhua)
Updated: 2009-01-29 09:15

DAVOS, Switzerland -- Chinese Premier Wen Jiabao on Wednesday expressed optimism that China's economy will continue to grow fast and steadily, and he called for confidence, cooperation and responsibility in overcoming the current global financial crisis.

Chinese Premier Wen Jiabao attends a special plenary session at the World Economic Forum (WEF) in Davos January 28, 2009. [Agencies]

China is facing severe challenges, including shrinking external demand, rising unemployment in urban areas and greater downward pressure on economic growth as the current financial crisis has had a rather big impact on China's economy, Wen told participants at the World Economic Forum (WEF) annual meeting in Davos.

China has made timely adjustment to the direction of its macroeconomic policy, swiftly adopted a proactive fiscal policy and a moderately easy monetary policy, introduced 10 measures to shore up domestic demand and put in place a series of related policies, he said.

"China's economy is in good shape on the whole. We managed to maintain steady and relatively fast economic growth in 2008 despite two unexpected massive natural disasters," he said.

The steady and fast growth of the Chinese economy is in itself an important contribution to global financial stability and world economic growth, he added.

"We are full of confidence" as the fundamentals of the Chinese economy, the long-term trend of China's economic development and the advantages contributing to China's economic growth remain unchanged, Wen said.

Many heads of state or government, business leaders and prominent scholars gathered on Wednesday in the Swiss skiing resort for discussions that centered on ways to shore up global economic growth.

"A lot of discussions will be devoted to the present crisis management, and how to get out of the crisis," said Klaus Schwab, founder and executive chairman of the WEF.

The Chinese premier said the global financial crisis is a challenge for the whole world, and the pressing task for the international community is "to take further measures to restore market confidence as soon as possible."

In tackling the crisis, confidence is the source of strength, practical cooperation the effective way and accepting responsibilities the prerequisite, he told the forum.

"We should not only take more forceful and effective steps to tide over the current difficulties, but also push for the establishment of a new world economic order that is just, equitable, sound and stable," Wen said.

To this end, international economic cooperation and a sound multilateral trading regime should be promoted, and the reform of the international financial system should be advanced, he said.

It is also necessary to strengthen international cooperation in financial supervision and regulation to guard against the build-up and spread of financial risks, the Chinese premier said.

Wen said the interests of developing countries should be effectively protected and economic development of the whole world should be promoted.

He also called for jointly tackling global challenges, such as climate change, environmental degradation, natural disasters and food security.

"No country can be insulated from these challenges or meet them on its own. The international community should intensify cooperation and respond to these challenges together," Wen said.

Wen, who is on a visit to Switzerland, traveled to Davos on Wednesday after meeting with President of the Swiss Confederation Hans-Rudolf Merz for talks in Bern a day earlier.

Switzerland is the first leg of Wen's current European tour, which will also take him to Germany, the European Union headquarters, Spain and Britain.