Chinese PM vows to fight inflation

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Chinese PM vows to fight inflation

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Chinese Premier Wen Jiabao says he is confident that China will maintain economic growth.

14 September,2011 11:00 am

Chinas Premier Wen Jiabao on Wednesday said China will keep monetary policy right to keep a lid on inflation, but also signaled caution to avoid hurting the worlds second-largest economy.Speaking at the World Economic Forum in northeastern China, Wen said China would forge ahead with structural reforms and boost domestic consumption to sustain long-term economic growth.China will adhere to the strategy of expanding domestic consumption, focus on adjusting and optimising the demand structure and increase the momentum triggered by consumption, he said.He vowed to keep a tight lid on inflation, following a drop in annual inflation figures from a three-year high of 6.5 percent in July to 6.2 percent in August. He also signaled caution to avoid hurting the worlds second-largest economy.We will continue to implement positive fiscal policies and prudent monetary policies, aimed at tackling the prominent problems emerging during economic operation to keep the continuity and stability of Chinas macro-economic policies, Wen said.He said China was willing to invest more in European countries but said countries must take responsibility for their sovereign debt issues.The governments of all the countries must truly take responsibility and take care of their own affairs. The main developed countries must take responsible and effective fiscal policies to properly cope with the sovereign debt issues, he said.He also called for European countries to recognise China as a market economy.He urged the international community to strengthen confidence and enhance cooperation to face the challenges and expressed confidence in the full recovery of the U.S. economy.Wen delivered the opening speech at the event, known as summer Davos, since the World Economic Forum first began staging the event in China in 2007.