Wen Says China Faces Economic ‘Dilemmas’

According to Premier Wen Jiabao, China’s “domestic and global economic environment is extremely complicated.” From the Wall Street Journal:

Chinese Premier Wen Jiabao said Sunday the country’s economic policies “face increasing dilemmas” because the impact of the global financial crisis is more serious than expected, but he reiterated that China won’t hold back steps to restructure the economy for growth.

The remarks were made after two purchasing managers’ indexes issued last week showed China’s manufacturing economy slowed in June and after China on Friday revised upward its gross domestic product growth for 2009. The GDP revision means China’s year-to-year growth will have a higher comparison base for the second and following quarters, so the growth may be lower than economists’ expectations.

Despite the widely expected slowdown, Mr. Wen reiterated that China will continue its economic policies but increase their flexibility, to “solve current significant and urgent problems” while “laying foundations for stable and relatively fast economic growth of 2011 and in a longer term.” He was speaking at a economic forum held Saturday in the central Chinese city of Changsha, according to a statement posted on the central government’s website.

“China’s current economic situation is sound, but the domestic and global economic environment is extremely complicated,” Mr. Wen said. He said Beijing will try to maintain relatively fast economic development while managing inflation.

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