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Wen discusses financial crisis with WB president

(Xinhua)
Updated: 2008-12-16 21:17

BEIJING -- Chinese Premier Wen Jiabao said here Tuesday in response to the global financial crisis, China will focus on expanding domestic demand as an effective way to stimulate economic growth.

Chinese Premier Wen Jiabao (R) meets with President of the World Bank Robert Zoellick in Beijing, capital of China, on Dec. 16, 2008. [Xinhua]

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Wen made the remarks when meeting with President Robert Zoellick of the World Bank (WB). Wen briefed the WB President about China's economic situation and its measures to address the global financial crisis.

Wen said China, with a 1.3-billion population, has yet to overcome the disparity between urban and rural areas, relatively low per capita incomes and a relatively large number of poverty-stricken people.

Wen said China's move to expand domestic demand is aimed to gradually meet the people's demands through economic growth, which will be achieved by stimulating the ultimate consumption market.

To meet this end, Wen said China will focus on improving incomes of rural residents and social security for low-income groups. He said China will strive to expand employment. It will also work on the development of such social causes as education, medical service and culture. Wen said China will advance development of infrastructure in rural areas, including drinking water, bio-gas, roads, electricity and telecommunications. He said China will continue to protect the environment, while working on the rehabilitation of earthquake-stricken areas and poverty elimination.

Zoellick said the current financial global crisis calls for closer cooperation among the international community. He said the World Bank will continue to play a role in helping China overcome difficulties in financing and employment.

Zoellick appreciated the Chinese government's measures to expand domestic demand. He said sustaining its own economy will be China's biggest contribution to maintaining financial stability and the economic growth of the world.

Zoellick also met with Chinese Vice Premier Li Keqiang Monday.

Li said during the meeting that the World Bank should play its due role as the world's largest multilateral development financial institute to help developing countries to fend off external impacts and maintain financial stability and economic growth.

Li said China has been participating in international cooperation on addressing the financial crisis. He said China will continue to act in a responsible way by making its own contribution to maintaining the stability of global finance and economy.

Li said the fundamentals and long-term trend of China's economic growth remained unchanged despite the many difficulties and grim challenges it faces.

Zoellick spoke highly about China's performance in addressing the global financial crisis. He expressed the willingness to further expand cooperation between the World Bank and China.