Responses are mixed after US President George W Bush signed into law a 700 billion dollar financial rescue plan. Though US investors remain concerned about an economic recession, the rest of the world seems to hold a positive attitude toward the plan. Our reporter Tang Damin has more.

Reporter:

In the US, both the Republican and Democratic presidential candidates John McCain and Barack Obama are playing a wait-and-see attitude.

McCain calls the plan a tourniquet and not a permanent solution,

"This rescue bill isn't perfect. But we have to stop the damage to our economy done by corrupt and incompetent practices on Wall Street and in Washington. Further action is needed and it shouldn't take a crisis to get this country to act and this Congress to act in a bipartisan fashion."

Like McCain, Obama says the rescue package wasn't a fix.

"It's not the end because we still have 150,000 new people who've lost their jobs this month, 750,000 people since the beginning of this year. The fundamentals of the economy aren't sound and we're going to have to do a lot of work moving forward."

US stock market rose but soon dropped on Friday, showing that investors are still concerned about an economic recession.

The rest of the world seems to hold a positive attitude toward the new plan.

European Commission President Jose Manuel Barroso says that by approving the plan, the U.S. legislators have shown responsibility.

Australian Prime Minister Kevin Rudd calls the plan a step forward in easing the global financial crisis.

"This is a positive step forward in restoring stability to the global banking system. And the stability of the banking system is important to all working families everywhere."

Japanese Finance Minister Shoichi Nakagawa also welcomed the passing of the bill,

"Under the financial situation like this in the US and the world, passing the bill will have a positive affect, and I would like to hail that."

In Beijing, a spokesman of the People's Bank of China says it welcomes the passage of the bailout plan.

He adds that the fundamentals of the Chinese economy remain unchanged, the financial market is safe, and that China has worked out response plans against the impact of the U.S. financial crisis.
Deputy director of China's State Development Research Centre, Ba Shusong, agrees with the spokesman.

He says that the US financial turmoil will definitely put pressure on China's exports to the US and other major economies, but the bulk of the country's economy remains safe.

He adds that China needs to explore more on its domestic demand to make it a major driving force for further economic growth.

The rescue bill will give authorization to the federal government to purchase bad mortgage-related assets from banks and other financial institutions.

The bailout will allow banks to resume lending to businesses and consumers.

The original bill got a bail-down on Monday.

Before the Friday revote, sweeteners were added to the new version, such as a raised federal deposit insurance limits, and massive tax breaks to benefit middle class Americans.

Tang Damin, CRI news.