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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: China's premier Wen says stimulus showing results By JOE McDONALD,AP Business Writer AP - Monday, January 12 BEIJING - Premier Wen Jiabao says China's efforts to break out of an economic slump amid global turmoil are starting to show results, with the economy performing better than expected in December, state radio reported. "The policy measures we have taken have achieved initial results," Wen said, China National Radio reported on its Web site. "Economic conditions in December were better than expected." Revenues at some companies are rising, backlogs of unsold goods are falling and power consumption is growing, Wen was cited as saying during a three-day visit to factories in the eastern province of Jiangsu. The report gave no figures. Wen's comments appeared to be part of efforts to restore flagging corporate and public confidence _ a key element in Beijing's plans, which rely on spurring private investment and consumer spending _ and could be a positive sign for hopes China will help to drive a global recovery. Beijing announced a 4 trillion yuan ($586 billion) stimulus package in November aimed at reducing reliance on exports by revving up domestic consumption. Effects of the spending are not expected to be seen for several months, but some industries such as steel are stepping up activity in anticipation of revived demand. "The early results are not big, but they are strengthening our confidence that we can triumph over adversity," Wen was quoted as saying. China's exports fell in November for the first time in seven years and manufacturing activity shrank in December for a third straight month. December trade figures are due to be released Tuesday, and analysts expect more weakness amid lackluster global demand. China's 2008 economic growth is expected to fall to about 9 percent, down from 2007's 11.9 percent. Analysts have cut this year's forecasts to as low as 6 percent _ a worrisome sign for communist leaders who need to satisfy a public that expects steadily rising incomes. The fall in export demand has triggered factory closures and layoffs in trade-dependent coastal areas in the south. The government has warned that rising unemployment could fuel unrest and is pressing companies to avoid more job cuts. Wen said Beijing will take additional steps, including spending 600 billion yuan ($88 billion) on long-term scientific and technological projects, according to the report. It was unclear how many of those projects were new. ___ On the Net: China National Radio (in Chinese): http://www.cnr.cn 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 Oil falls below $40 as investors eye US earningsAP - 40 minutes ago BIS-HIGHLIGHTS-Central bankers attend BIS meeting in BaselReuters - 59 minutes ago Glint of greener cars fails to lift pall from Detroit auto showAFP - 2 hours 12 minutes ago China Eastern: fuel hedging loss $900 millionAP - 2 hours 16 minutes ago Related Articles: Business TOPWRAP 2-Rising job losses fuel global recession fearsReuters - 39 minutes ago Most China stocks rise, financials depress indexReuters - 39 minutes ago Russia allows 2nd rouble weakening in 2 daysReuters - 40 minutes ago Oil falls below $40 as investors eye US earningsAP - 40 minutes ago European stock index futures point to early dropReuters - 41 minutes ago Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Britain's Prince Harry apologises for racist language Israeli troops push deeper into Gaza's main city Is Tintin gay? Cartoon birthday boy dogged by rumours Swiss bank set to announce record loss: report Kate Winslet wins Golden Globe supporting actress View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular

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