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Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: Chinese leader says China losing competitive edge AP - Sunday, November 30 BEIJING - Chinese President Hu Jintao warned that China has started to lose its competitive edge in trade amid the global financial crisis, as he told Communist Party leaders the challenge posed a test to the government's ability to rule, state media reported. China's economic growth is expected to fall to about 9 percent this year, down from last year's 11.9 percent. That would be the fastest of any major economy, but Chinese leaders worry about possible unrest as unemployment rises, especially in export industries where factories are shutting down as global demand plummets. "External demand has obviously weakened and China's traditional competitive advantage is being gradually weakened," Hu said, according to the Communist Party's official People's Daily newspaper. Hu told members of the Communist Party's powerful Political Bureau that the financial meltdown posed critical challenges to a government that has staked its legitimacy in part on competent management of a rapidly developing society. "Whether the pressures can be turned into a driving force and the challenges turned to opportunities ... is a test of our ability to control a complex situation, and also a test of our party's governing ability," Hu said. Hu urged party leaders to step up efforts to reform its economic growth model to achieve development that is sustainable. He said greater effort should be made to raise living standards, use resources more efficiently and develop rural and urban areas, the report said. The remarks come after China's top economic planner Zhang Ping, chairman of the Cabinet's National Development and Reform Commission, warned Thursday that the impact of the global financial crisis is worsening and that rising job losses could fuel instability. On Wednesday, Beijing announced its biggest interest rate cut in 11 years to increase consumer and company spending. A multibillion-dollar stimulus package launched on Nov. 9 aims to boost growth through heavy new spending on construction, tax cuts and aid to the poor and farmers. Beijing plans to spend 18 trillion yuan ($2.6 trillion) in 2009 alone to help blunt the impact of the global financial crisis, using the immense capital accumulated over years of double-digit economic growth and booming exports to build railways, roads, airports and electricity networks. Email Story IM Story Printable View Blog This Recommend this article Average (0 votes) Sign in to recommend this article » Most Recommended Stories » Related Articles: China's Economy SKorea's Hyundai Motor cuts domestic productionAFP - 25 minutes ago NEWSMAKER-China's richest man thrown into spotlight amid probeReuters - 58 minutes ago Chinese leader says China losing competitive edgeAP - Sunday, November 30 Britain readies new measures as UN steers aid to poor nationsAFP - Sunday, November 30 Related Articles: Business SKorea's Hyundai Motor cuts domestic productionAFP - 25 minutes ago Thai grenade attack stokes tension ahead of rallyReuters - 34 minutes ago Indian home minister resigns over Mumbai-ruling partyReuters - 36 minutes ago NEWSMAKER-BHP head to focus on downturn after Rio failureReuters - 45 minutes ago NEWSMAKER-China's richest man thrown into spotlight amid probeReuters - 58 minutes ago Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed World's oldest person dies at 115 years Love handles increase death risk: study Saudi king says 75 dollar oil price 'fair' Michael Jackson strikes 'amicable' deal with Arab sheikh Bomber strikes Shiite mosque after Iraq approves US pact View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular

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