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Highlights of Premier Wen's press conference


(chinadaily.com.cn)
Updated: 2010-03-14 12:46
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Premier Wen Jiabao answered a broad range of questions during a press conference on Sunday after the closing meeting of the national legislature's annual session at the Great Hall of the People in Beijing.

I will be committed to my work in next three years

The development road of China will be bumpy and even thorny in the next few years, Premier Wen Jiabao told the press conference.

He called for unslackened efforts to tackle difficulties, saying "we must have firm confidence."

"No matter how high a mountain is, one can always ascend to the top. The only way out and hope when facing difficulties lies in our own efforts," Wen said.

The premier said he loves China deeply and will be committed to his work during the next three years.

I have a strong wish to visit Taiwan

Premier Wen Jiabao said he still has a strong wish to visit Taiwan in the future.

At the press conference in Beijing, Wen said that some media in Taiwan selectively reported his remarks over the negotiation of economic cooperation framework agreement (ECFA) between the mainland and Taiwan.

"I did say we will make Taiwan to benefit more from the agreement, but I also said we are brothers. The second half received little coverage in Taiwan."

Yuan appreciated 14.5% in last two years

Chinese yuan is "not undervalued", Premier Wen Jiabao told a press conference Sunday after the closing meeting of the national legislature's annual session at the Great Hall of the People.

Wen said China's real effective exchange rate appreciated 14.5 percent between July 2008 and February 2009, the worst time of the world economy.

During this period, China's exports fell by 16 percent but imports only dropped 11 percent and its trade surplus decreased $102 billion.

He said keeping the yuan exchange rate basically stable had played an important role in facilitating the recovery of the global economy from the worst financial crisis in decades.

Wen said since China began its currency reform to unpeg the yuan against the US dollar in July 2005, the yuan has appreciated 21 percent against the US dollar, or 16 percent in real terms.

Wen said China opposes accusations and even forceful measures that press for yuan appreciation, which will not benefit the exchange rate reform.

"A country's exchange rate policy and its exchange rates should depend on its national economy and economic situation," Wen said.

"We support free trade, which will keep the economy going and bring harmony and peace to people," he said.

Despite pressures on yuan appreciation, the premier said China will further improve the yuan exchange rate formation mechanism and keep the yuan exchange rates basically stable at a reasonable and balanced level.

Wen said a stable yuan has played an important role in facilitating the recovery of the global economy from the worst financial crisis in decades.

China, which overtook Germany as the world's biggest exporter at the end of 2009, is under increasing criticism for devaluating the renminbi, or its currency yuan, to earn artificial price advantages.

On March 11, US President Barack Obama pressed China to embrace a "market-oriented" exchange rate for yuan, saying the move is "an essential contribution to that global rebalancing effort."

Economic structure adjustment top priority

Adjusting China's economic structure and transforming economic growth pattern will be top priorities for the nation, Premier Wen Jiabao said.

He said China should address the issues of regional imbalances and a lack of coordination and sustainability in economic development.

China must work hard to gain good balances between stable economic development, structure adjustment and inflation management, he said, before adding that it will be a long and arduous process, which has been aggravated by the international financial crisis.

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