China to stick with economic policies

China will stick to its current policy course because the economy is headed in the right direction despite complicated circumstances…

China will stick to its current policy course because the economy is headed in the right direction despite complicated circumstances, premier Wen Jiabao said in remarks released today.

"We should maintain the continuity and stability of macro economic policies," Mr Wen told a symposium of industrial leaders and economists earlier this week.

Global financial markets are concerned that a series of measures to cool the property market and slow bank lending will bring about an abrupt slowdown in the world's third-largest economy.

But the government's portal, www.gov.cn, paraphrased Mr Wen as saying: "Our economy is now heading in the expected direction of macro control."

Mr Wen said the government needed to strike the right balance between sustaining growth and managing inflation expectations, while making structural adjustments to transform China's economic model and lay a solid basis for rapid longer-term development.

"We should have a good grasp of the strength, rhythm and focus of implementing policies to further strengthen the momentum of economic growth," he said.

Reuters