Chinese premier confident on economy

PREMIER WEN Jiabao struck a confident note on the Chinese economy in his annual news conference yesterday, saying the government…

PREMIER WEN Jiabao struck a confident note on the Chinese economy in his annual news conference yesterday, saying the government’s stimulus plan would spark fresh growth and he defended Beijing’s policies on Tibet.

“Confidence is more important than gold and money,” Mr Wen told reporters at the carefully stage-managed press conference in the Great Hall of the People, which marks the end of the annual parliament, the National People’s Congress.

While Mr Hu is the senior leader, Mr Wen is a very popular figure and is more often the public face of the leadership, with a paternal image that has led to him becoming known as “Grandpa Wen”.

“First and foremost, we have to have very strong confidence. Only when we have strong confidence can we have more courage and strength and only when we have courage and strength can we overcome the difficulties,” said Mr Wen.

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He said the government stood ready to unveil additional stimulus measures should the current €460 billion package of tax cuts and infrastructure spending prove insufficient to raising growth to about 8 per cent.

Speaking weeks before president Hu Jintao has his first meeting with president Barack Obama at a London summit of leaders of the G-20 group of major economies on April 2nd, Mr Wen expressed concern about China’s massive holdings of treasuries and other US debt, appealing to Washington to safeguard their value, estimated to be worth about $1 trillion. “We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I’m a little bit worried,” he said.

Mr Wen defended Beijing’s record in Tibet, including massive security measures to stop a repeat of last year’s anti-government revolt. “Tibet’s peace and stability and Tibet’s continuous progress have proven the policies we have adopted are right,” he said.

Mr Wen said China was willing to hold talks with representatives of the exiled Tibetan spiritual leader, the Dalai Lama, provided he gives up his “separatist stance”. Last year, envoys for both sides held three different rounds of talks but little progress was made.

Mr Wen also expressed his wish to visit Taiwan, China’s bitter rivals since the civil war with whom ties are improving. “Taiwan is China’s treasured island,” Mr Wen said. He would like to visit Alishan and Sun Moon Lake, two beauty spots. “Although I am 67-years-old, if there’s a chance for me to go to Taiwan, even if I can no longer walk, I will crawl to the island.”