At the press conference (March 14) after the 3rd Session of 11th NPC, Chinese Premier Wen Jiabao summarized 3 goals of ¡®10 China economic performance as follows: stable growth, economic restructure and inflation expectation management.
While most other economies struggled in recession, China managed an 8.7% increase in its GDP last year. It is widely recognized that China will easily beat its goal of 8% growth this year getting to a double digit rate again. The rebound is attributed to the ¡¯09 stimulus package of 4 trillion yuan (U$586 billion) to boost domestic demand. As a result, however, it has been turning on overheating government-controlled sectors in cool background, making bigger asset bubbles and spurring a higher price level. CPI went up to 2.7% in February, and it seems it will hover over 3% set in Wen¡¯s report. As for structural adjustment, it had better been treated as a stereotyped expression, no one expects it much.
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