China says to maintain stable economic policies

Thu Jan 28, 2010 11:45am EST
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By Tamora Vidaillet

DAVOS, Switzerland (Reuters) - The Chinese economy has rebounded following steps taken to deal with the crisis but the government needs to stick with its moderately easy monetary policy, Vice-Premier Li Keqiang said on Thursday.

The government also needed to maintain its active fiscal stance even if the world's third-largest economy was likely to expand at a rapid clip in 2010, Li said in a speech delivered at the World Economic Forum in the Swiss mountain resort of Davos.

"There still remain many uncertainties in (the) domestic and external economic environment," said Li.

"To tackle these problems, we will keep continuity and stability of our macro economic policies, continue to follow a proactive fiscal policy and moderately easy monetary policy...," he said.

Steering clear of the sensitive topic of the Chinese currency, Li also said that China needed to manage inflation in an appropriate way.

Underscoring major challenges such as pressures on natural resources and environmental woes, Li reiterated government goals of trying to spur consumption as a major driver of economic growth so that China could lean less on exports.

Such moves would create ample business opportunities for foreign businesses, he said in response to the only question posed after his speech concluded.

China would also tackle climate change, cooperating with the international community, and ensure that economic growth became more efficient with regards to the use of resources and environmental concerns, he said.   Continued...