Premier Wen Jiabao spoke optimistically about the economic future and relations between China and United States. His commentary came "at the end of China's annual parliamentary session - the only time he takes questions from reporters."
Mr. Wen agreed with the global consensus that 2009 may be more difficult than 2008, but that 2010 will be better. "He said confidence was 'more important than gold or money' in overcoming the world's financial troubles." He addressed and honored the United States as he expressed his continued interested and investment in the capitalist economy.
China will receive a stimulus plan of $586bn from the Communist government. $173bn of this package will be spent on "public welfare, technological innovation, environmental protection and infrastructure projects." Skeptics question the validity of this plan, as China is not well-known for protecting the best interest of the public or environment.
Mr. Wen targets a growth of 8% annually with this new stimulus plan, specifically by boosting consumption and raising consumer demands. But fear of social instability within the Communist nation is present, if the annual growth continues to slip.
The Chinese economy depends greatly on trade. But recent official figures showed that Chinese trade has decreased drastically from a year ago: exports are down more than a quarter from last February to $64.9bn, and imports also fell by 24.1% to $60.1bn.
These statements from Mr. Wen came hours before the G-20 summit was announced for April 2 to discuss the global economy. The 20 countries make up more than 80% of the world economy.
China has an estimated $1 trillion in dollar-denominated U.S. government debt.
