Wednesday, September 14, 2011

Chinese Premier says country cannot grow in isolation

Chinese Premier Wen Jiabao has said the country cannot grow in an isolated way, and it will look to develop global and domestic growth.

He added that more open economic and trade policies would help it and the wider world.

Premier Wen said that he was confident the US and Europe would fully recover from their current economic problems.

His comments came on the opening day of the World Economic Forum in the Chinese port city of Dalian.

Global player

China is the world's second-biggest economy but it has been criticised for some of its economic policies.

The US has been one of its most vocal critics, and the two have clashed over China's trade and currency measures.

China has been accused of focusing too much on driving export demand and keeping its currency artificially weak to achieve that end.

In his speech on Wednesday, Premier Wen said that China would now aim to boost domestic demand, and this in turn would help the global economy.

"I am confident that China's economy will make a new contribution to robust, sustainable and balanced growth in the global economy," Premier Wen said.

Debt risk

The BBC's Juliana Liu is at the World Economic Forum in Dalian and said that while Wen Jiabao was full of confidence about the state of the global economy, many of the delegates did not share that optimism.

Instead they were worried that any US economic recovery would be slow, while the European Union would struggle to resolve its debt crisis.

Leaders from Germany, France and Greece are set to meet Wednesday amid ongoing worries that Greece may default on its sovereign debt.

That could send shockwaves through other European economies and damage the region's banking system.

"There is a sense that the EU and US debt crises will roll on," she said.

But Premier Wen did say that China is willing to invest more in European countries, and asked them to recognise China as a market economy.

He was speaking on the opening day of an event by the World Economic Forum known as the "Summer Davos", which has been held in China since 2007.

Source: BBC
www.bbc.co.uk

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