Global Crisis Far From Over; China Reforms to Continue
The global financial crisis is far from over with global economy on track towards a wobbling recovery, Chinese Premier Wen Jiabao said in a speech to open the Hannover trade fair on Sunday.
"Currently, the international financial crisis is not over and the global economic recovery is difficult and tortuous," the premier said. Mr. Wen is on a European trip from April 20-27, including stops in Iceland, Sweden and Poland.
More investments and policy supports in the real economy and technical innovation will help tackle the crisis and drive global recovery, Wen said.
The development of real economies is the "foundation" of a sound and stable development of the world economy, while technical innovation is a "powerful driver of global recovery," according to Wen.
He explained that one important reason of the global crisis was that virtual economy in the developed world expanded too much and "was divorced from the real economy."
"The global economy cannot walk out of the shadow the crisis also partly related to the lack of new growth points in the real economy," Wen said, adding that China and Germany had fared better than most during the crisis due to their strong manufacturing bases.
Opening up
The ongoing premier also pledged to push ahead of China's reforms and opening-up.
One of the revelations from China's success, for "accumulating huge wealth" and "finalizing its process of industrialization which cost developed countries nearly a hundred year in only more than 30 years", is "sticking to the market-oriented reforms", Wen said, calling it a "perpetual power" of China's development.
The industrialization was quickened as China opens up its market and widens exposure to global competition especially after it joined the World Trade Organization.
Foreign direct investments in China had accumulated to some 1.16 trillion U.S. dollars by the end of 2011, topping developing countries for 19 consecutive years, Wen told the opening of the Hannover Messe, which was also attended by German Chancellor Angela Merkel.
About 500 Chinese exhibitors are taking part in this year's Hanover trade fair, and companies from the two sides are expected to sign a series of deals to boost ties in manufacturing.
Premier Wen stays in Hannover for one day, and most of his events take place around the trade fair, which according to analysts is a sign of China's willing to promote China-EU ties in a year marks the 40th anniversary of the establishment of bilateral relations.
On his agenda is also a visit to German car maker Volkswagen. Reuters said that Wen was expected to sign a deal with Volkswagen for the building of a new factory in Xinjiang province in western China.
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