Chinese Premier Wen Jiabao (C) shakes hands with a construction worker as he visits the Yangshan Deep-water Port in Shanghai, east China, July 5, 2008. Wen Jiabao made a research trip in Jiangsu Province, east China, and Shanghai July 4-6 to investigate economic development in the two regions.(Xinhua Photo) Photo Gallery>>>

    BEIJING, July 6 (Xinhua) -- Chinese Premier Wen Jiabao has said the country will step up efforts to keep economic development fast and steady despite challenges from home and abroad this year.

    Wen made the remarks during a three-day research trip to the eastern Jiangsu Province and Shanghai from Friday to Sunday, where he met with local officials, farmers and entrepreneurs.

    He said the country's economy was developing in the expected direction after overcoming challenges from within and without.

    Wen urged governments at all levels to further improve macroeconomic controls and optimize economic structure to avoid serious fluctuations in the country's economy.

    Fighting inflation was still one of the major tasks, he said, and governments should try to make price increases "acceptable" for both industries and the public.

Chinese Premier Wen Jiabao (L Front) visits Longteng Info Vision Opto-Electronics Co. in Kunshan of east China's Jiangsu Province, July 5, 2008. Wen Jiabao made a research trip in Jiangsu Province and Shanghai, east China, July 4-6 to investigate economic development in the two regions. (Xinhua Photo) Photo Gallery>>>

    Wen also called for more efforts to protect arable land to ensure grain security and more efforts to create jobs for low-income families and college graduates.

    He asked Jiangsu to coordinate development of the relatively backward northern part and the prosperous southern part of the province.

    He asked Shanghai to boost growth of the service industry, with the focus on building an international financial center and an international shipping center.

Economist: China should be alert to stagflation risks in fighting inflation

    BEIJING, July 4 (Xinhua) -- Li Yining, one of China's leading economists, said on Friday that China is facing a pressing challenge of preventing inflation turning into stagflation.

    He said stagflation, the co-existence of high unemployment and high inflation, might occur if improper measures were taken to fight inflation so as to disrupt market expectations, or the economy failed to survive the global slowdown. Full story

Global, local factors could drive China grain prices higher

    BEIJING, July 4 (Xinhua) -- A State Administration of Grain (SAG) official said on Friday grain prices might continue rising this year despite a rough supply-demand balance in China.

    "Price pressure for major grains in China this year persists as a result of increasing agricultural costs, soaring prices in the global market and bullish sentiment driven by higher minimum purchase prices," SAG deputy head Zeng Liying told a seminar. Full story