China hopes to curb inflation as economy's growth slows
China's economy will slow to eight per cent growth in 2008, Wen says
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Wednesday, 05, Mar 2008 10:55
China's government will keep inflation in its fast-growing economy under control, prime minister Wen Jiabao has pledged.
The commitment came in Mr Wen's two-hour speech to the Chinese National People's Congress as he begins his second five-year term in power.
His state-of-the-nation address identified current price hikes in food and utility costs and rising inflation as the main concerns of ordinary Chinese people.
Mr Wen said the "primary task" in the coming year would be to prevent China's rapidly-paced economic expansion lead to an "overheated" economy.
Chinese inflation reached 7.1 per cent in January and many analysts fear the country's rapid growth could lead to instability.
Others argue the global slowdown caused by the credit crunch, weak dollar and high prices will do much of the work for Beijing. Mr Wen is seeking to restrict inflation to 4.8 per cent in the current year.
Last year's record growth of 11.4 per cent is not expected to be matched in 2008, Mr Wen said. He predicted eight per cent for 2008.
China Daily reported Mr Wen claiming China had established itself as the fourth-largest economy in the world and that it had seen 65 per cent growth in the last five years alone.
"China has entered a new stage in developing a more open economy," it quoted him as saying.