Chinese Premier Says Global Crisis More Serious Than Expected

Wen Jiabao China

Some interesting comments made by Chinese Premier Wen Jiabao this weekend.


Chinese Premier Wen Jiabao said Sunday the country’s economic policies “face increasing dilemmas” because the impact of the global financial crisis is more serious than expected, but he reiterated that China won’t hold back steps to restructure the economy for growth.

“China’s current economic situation is sound, but the domestic and global economic environment is extremely complicated,” Mr. Wen said. He said Beijing will try to maintain relatively fast economic development while managing inflation.

The question for the world economy is whether China is already wondering whether its modest policy loosening is already too much. Wen Jiabo isn’t giving any indication of such, yet. But if US demand shrinks, and Europe can’t get out of its mess in a timely manner, you have to figure leaders in Beijing will wonder what it’s doing by raising the value of the yuan (albeit modestly), and not giving its exporters every advantage.

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