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Chinese premier: World should have faith in China
Chinese Premier Wen Jiabao on Monday met with foreign delegates at the 10th China Development Forum, calling on international efforts to combat the financial crisis.
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Insight
What else is needed for China except the stimulus actions?
"I think (it´s necessary) for China´s economy to move past the initial development phase, and move up to more income levels that would be more comparable to western economies. A greater share of private ownership initiative will be necessary."
"Currently, the personal income system in China is mainly targeting income from salary. This is only a small part of what is driving income disparity. There is also income from the investment sector and others. They are based on total income instead of salary income. And they help to greatly reduce the tax rate."
Will huge injection of USD affect China?
"In the short term, its effect on China is limited. But in the longer term, we should realize that China´s 2 trillion US dollar foreign reserves will have less significance toward rescuing the US economy."
"We should diversify our foreign reserves. Right now the best way to diversify our investment is to invest in resources, natural resources in developing countries."
"It has negative effects, including inflation and the depreciation of the US dollar. The fluctuation of global currency will have many negative effects on China´s economy."
Does disapproval of Coca Cola-Huiyuan deal signal trade policy change?
"It would be wrong to assume China didn´t welcome foreign investment based on the country´s disapproval of Coca-Cola´s proposal to acquire China Huiyuan Juice Group."
"China would continue to expand import in 2009 and actively organize company procurement delegations to purchase equipment, goods and technologies abroad."
