China warns of tough economic year ahead

CHINA: Chinese Premier Wen Jiabao has warned the nation's economy faces the toughest year since 2000, pledging a range of measures aimed at curbing the downturn, state media said Tuesday.

"This year is the most difficult year for China's economic development so far this century," Wen told a meeting of the State Council, or cabinet, held on Monday, the Xinhua news agency reported. "We must turn around the downward trend of economic growth as soon as possible," he said at the gathering, called to discuss a draft government work report to be made public when the legislature meets in March. Wen urged officials at all levels to prioritise job creation and help disadvantaged groups to ensure social stability, highlighting concerns that the jobless situation could lead to growing unrest. More steps should be taken in the first quarter to reverse the economic slowdown, Wen said, according to Xinhua.

Government agencies should speed up and flesh out the implementation of an economic stimulus package announced in November as well as measures to boost major industries announced recently, he said.

Beijing has issued tax cuts and a 1.5-billion-dollar subsidy for auto makers, and it is planning measures for eight other major industries such as shipbuilding, petrochemicals and textiles. Wen also called on exporters to seek out emerging markets and improve product quality to maintain growth, Xinhua said, after shipments fell for a second month in December by 2.8 percent, its biggest drop for a decade.

Beijing, Tuesday, AFP