Business Tianjin Magazine - Business English Magazine in China

China Premier: to maintain active fiscal policy

Written by The Wall Street Journal Monday, 10 August 2009 17:14

Print

NEWS - China Finance

User Rating: / 0
PoorBest 


BEIJING (Dow Jones)--China will maintain its current macroeconomic policies stance, including active fiscal policy and moderately loose monetary policy, said Premier Wen Jiabao over the weekend.


"The reason for us to maintain the current policies is that we are still facing many difficulties and uncertainties, including global economy outlook is still not clear, and external demands decline pressure is still relatively high," said Wen, according to a statement posted on the central government's Web site Sunday.


The effect of some of China's stimulus policies will weaken over time, said Wen in a three-day trip to east China's Jiangsu province.


Beijing announced CNY4 trillion stimulus package earlier this year to support the country's economy growth.


But as China's property and stock markets rebound, the government has struggled to find a way to deal with the risks of inflation and asset bubbles.


Fears that China will withdraw some stimulus programs put in place to deal with the global financial crisis had pushed the benchmark Shanghai Composite Index down 4.4% this week, after rising for seven weeks in a row.