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Zhu Rongji

Premier worried about effect of global downturn

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The Chinese Government will take measures to boost state investment and public consumption to keep the economy booming, Premier Zhu Rongji has said.

Xinhua yesterday reported that during an inspection tour of Guizhou province last week, Mr Zhu, without revealing any specifics, said new measures were necessary as the world's economy showed 'obvious signs of a slowdown'.

'[We] must increase investment and consumption, and take every possible measure to increase exports,' Mr Zhu said.

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The remarks on the economy were the first by a top Chinese leader since the Beidaihe summit ended last week. Beijing's leadership meets every summer at the northeast seaside resort to hammer out policies for the coming year.

Mainland officials have begun to tone down their optimism in recent months. Early this year, top leaders boasted about the strength of the Chinese economy and confidence in China's eventual entry into the World Trade Organisation.

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WTO membership has been delayed until early next year and the US economy has not shown clear signs of a rebound despite repeated cuts in interest rates.

The remarks by Mr Zhu highlighted that Beijing's leaders are concerned about the effect of the global economic downturn on China's economy. Chinese officials have stuck to the eight per cent yearly growth rate prediction for 2001, although most foreign governments have revised downward their own economic forecasts.

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