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New stimulus package for China possible

Article published on the 2009-03-13 Latest update 2009-03-13 12:45 TU

Chinese PM(Photo:Reuters)

Chinese PM

Chinese Prime Minister Wen Jiabao says more money will be injected into the economy if needed, to fight the current global economic crisis. The announcement came at the end of the annual 9-day full session of parliament. Beijing has already unveiled an unprecedented four trillion yuan (580 billion euros) stimulus package, but Wen admitted the growth target of 8 per cent for this year will be difficult to achieve.

Financial markets expressed disappointment that the parliamentary session did not produce firm pledges of more spending measures for the world's third-largest economy.

China's economy grew by just 4.8 per cent in the last quarter of 2008 which was well below the eight per cent GDP growth needed to keep unemployment at a manageable level.

Exports in February plunged more than 25 per cent over the last 12 months while industrial output expanded more slowly compared to the same period last year.

Wen also called on France to clarify its stance on Tibet to improve damaged relations between Beijing and Paris.

Relations between the two countries worsened after French President Nicolas Sarkozy met the Tibetan spiritual leader, the Dalai Lama in Poland in December last year.

China has accused the Dalai Lama of wanting independence for Tibet after 58 years of Chinese rule.