Special Report: Global Financial Crisis
BEIJING, Jan. 12 -- The country could be the
first to recover from the global financial crisis, and will introduce more
measures in the next two months to bolster the economy, Premier Wen Jiabao has
"Our aim is to be the first to recover
from the financial crisis. We must have faith and determination," Wen said on a
tour of export powerhouse Jiangsu province over the weekend.
The government will put forward a series of new
measures, which top policymakers are working on, before the annual session of
the National People's Congress that begins on March 5, he said.
Policymakers have used proactive fiscal and
moderately loose monetary policies to maintain the economy's momentum. Plus, the
government is drafting another policy package to help nine key industrial
sectors hit hard by the global economic downturn.
The National Development and Reform
Commission, the country's top planning body, is likely to announce the detailed
policy for the auto sector soon. The policy will offer measures like tax and
credit incentives to increase the sale of vehicles.
Wen said the government would expedite the investment
of 600 billion yuan (88 billion U.S. dollars) into six major projects, approved
in the country's master plan for scientific and technological development over
medium and long terms.
The premier did not give details of the six projects
but the master plan, released in 2006, included 16 scientific and technological
schemes that were expected to be completed by 2020. Among them the development
of the indigenously built jumbo passenger aircraft and the manned space
The country's economy has been losing steam over the
past six months because the global economic downturn has dealt a blow to its
exports sector. Exports dropped in November, the first time in seven years, and
the industrial output growth fell to 5.4 percent, the lowest in 10 months.
But "our measures have already taken effect", Wen
said, adding that the December data were "better than expected".
Some economic indicators such as corporate revenue
and electricity use have already begun to rebound, he said.
According to China Electricity Council, an industry
association, the country's use of electricity rose to 273.7 billion KWh in
December, up 6.8 percent from the previous month. In October, the use of
electricity, largely considered an indicator of the country's economic
activities, dropped about 4 percent year-on-year - the first time in a
The 586-billion dollars fiscal stimulus package,
announced on Nov 9, is expected to help the economy rebound this year,
economists with the Standard Chartered Bank said in a research note on global
economic outlook. They remained upbeat over the country's long-term growth
prospects, too, despite the current slowdown.
Yi Gang, central bank vice-governor, said at a forum
over the weekend that the country's economic growth would pick up between the
second and third quarters because local enterprises are likely to have reduced
their inventories substantially by then.
(Source: China Daily)