Wen hails contribution as stimulant for world

Source: Shanghai Daily  |   2008-11-11  |     NEWSPAPER EDITION

CHINA'S massive stimulus package was its "biggest contribution to the world" amid the financial crisis, Premier Wen Jiabao said yesterday, as hopes rose that heavy spending on construction and other projects would help support global growth by fueling demand for imported machinery and raw materials from the home front.

With Sunday's announcement of the 4-trillion-yuan (US$586.03-billion) package, China staked out a bold position as President Hu Jintao prepared for next weekend's Washington meeting of leaders of 20 major economies to discuss a response to the global financial meltdown.

"China has really set the pace for expansionary policies elsewhere," Tim Condon, the Asia regional economist for Dutch bank ING, told The Associated Press.

The Chinese government will inject more funds for investment and improve investment structures to better cope with adverse global economic conditions, the State Council, or Cabinet, decided at an executive meeting presided over by Wen.

To achieve "steady and relatively fast" economic growth and prevent "economic ups and downs" amid global and domestic economic challenges was on top of the country's agenda, Xinhua news agency quoted the premier as saying.

Wen said the 4-trillion-yuan package was meant to boost investment and consumer spending, maintain export growth and promote corporate competitiveness and financial reform.

"We must implement the measures to ensure fast and stable economic development," the premier said. "They are not only the needs of the development of ourselves, but also our biggest contribution to the world."

The plan calls for higher spending through 2010 on airports, highways and other infrastructure, more aid to the poor and farmers and tax cuts for exporters.

Wen urged local governments to be "quick" and "effective" in carrying out these measures with "large-scale" investment projects launched to boost domestic demand, Xinhua said.