China must be cautious in exiting economic stimulus: Wen | world | Hindustan Times
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China must be cautious in exiting economic stimulus: Wen

world Updated: Mar 14, 2010 15:07 IST

IANS
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China's exit strategy on the economic stimulus should be "very cautious and flexible" in order to shore up the hard-earned economic recovery, Premier Wen Jiabao said on Sunday.

"We must maintain the continuity and stability of macro economic policy, which means we will continue implementing proactive fiscal policy and moderately loose monetary policy to consolidate the trend of economic recovery," Wen told reporters after the annual parliamentary session closed.

Wen said the government will make more efforts to keep its policies flexible while keeping close watch on domestic and international economic changes, Xinhua news agency reported.

He noted it is a very difficult job to properly handle the relations between maintaining economic growth, adjusting economic model and managing inflation expectation this year.

"Although it is a tough job, it should be addressed," he said.

Wen said agriculture is the life-line of the national economy, and it plays a decisive role in ensuring economic growth and managing inflation expectation, he said.

He stressed that China will make institutional arrangements to turn the country into a "fair playing ground" for foreign investors and grant foreign enterprises "national treatment".

Wen said that China welcomed foreign investors to do their business in line with the Chinese laws and he encouraged them to bring more research and development centres into the country so as to improve the efficiency in the use of foreign capital.

He said that China would stick to the policies of opening up and economic reform.

He pledged to create more opportunities to exchange ideas with foreign investors in the remaining three years of his tenure.