China Remains Alert to Rebound in Economic Crisis:PM

Chinese Premier Wen Jiabao says the country will remain alert to any rebound in the economic crisis and is not ready to withdraw stimulus measures. He also rejected foreign pressure to appreciate the value of China's currency.

Our Shuangfeng has more.

REPORTER:

During his annual news conference following the conclusion of the parliament sessions, Premier Wen Jiabao says the world is still facing uncertainties in the economic recovery and China must take steps to sustain its recovery.

"China needs to strike a balance between maintaining a relatively fast and stable development, adjusting the economic structure and managing inflation expectations to avert a possible economic 'double dip' this year."

Boosted by a raft of stimulus measures, China's economy expanded 8.7 percent in 2009, staging a speedy recovery after being hit by the worst global financial crisis in decades.

But worries have arisen over possible economic bubbles. Last year, the country had new loans amounting to 9.6 trillion yuan, or more than 1.4 trillion U.S. dollars. Investment in real estate rose by 30 percent and housing prices remained staggeringly high for residents.

Premier Wen says the country's exit strategy on economic stimulus should be "very cautious and flexible" in order to sustain the economic recovery. He says China will continue implementing proactive fiscal policy and moderately loose monetary policy.

The premier also says the Chinese Yuan is "not undervalued" and rejects foreign pressure to boost its value.

"Depreciating one's own currency and attempting to pressure others to appreciate, for the purpose of increasing exports, in my view, is protectionism."

The premier says China opposes certain countries engaging in finger-pointing or forcing other nations to appreciate their currencies because it is not good for the Renminbi exchange rate reform.

For the Beijing Hour, I'm Shuangfeng.