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Wen Jiabo, Premier of the State Council of China is speaking right now at the WEF |live blog (via video)

Wen Jiabo, Premier of the State Council of China is speaking right now at the WEF.

Wen Jiabao (simplified Chinese: 温家宝; traditional Chinese: 溫家寶; pinyin: Wēn Jiābǎo; Wade-Giles: Wen Chia-pao) (born 15 September 1942) is the Premier of the State Council of the People’s Republic of China, leading the country’s cabinet.

wen

He began with a bit of a lecture on western excesses of over-consumption.  He goes on to speak of China’s approach to the crisis.

  • need balance between consumption and saving
  • balance between regulation and innovation
  • challenges in China and business environment
  • Shrinking demand
  • overcapacity
  • difficult business conditions
  • unemployment rising

Actions being takengrowth reducing

  • active and responsible
  • designed to boos domestic demand
  • timely adjustment to macroeconomic policy
  • systematic/ programmed steady fast growth
  • increased government spending 4 trilion rmb (16% of GDP)
  • tax cuts
  • increased government housing rural investment
  • railway and infrastructure
  • earthquake reconstruction
  • 2 year stimulus programme
  • improve competitiveness
  • innovation in science and technology through 16 key projects including coal, and environmental projects.  Sustainable growth
  • GDP 9% growth/ CPI steady

World

  • hope to improve world economy through above (no specifics here?)
  • advantages contributing to Chin’as growth remain in place
  • healthy fiscal balance/ adequate funds
  • can undertake big projects.
  • scientific approach to development that puts people first
  • committed to reform and win win progress
  • people are hard working and resilient
  • maintain fast steady growth and contribute to world growtgh
  • financial crisis is responsibility for whole world
  • confidence is source of strength
  • confidence in markets is essential
  • confidence in leaders and in countries
  • financial crisis is test of world financial co-operation

Ideas

  • deepen international cooperation to solve crisis
  • trade protectionism will prolong the crisis
  • move forward trade liberalisation
  • support Doha
  • advance reform of financial institutions
  • new international financial order
  • exposed deficiencies in governance structure of major financial institutions
  • enhance responsibility
  • developing countries – greater say
  • regional liquidity assistance
  • financial supervision to guard against build of financial risks
  • supervision of reserves and oversights – (lots of emphasis on regulation and supervision)
  • promote interests of developing countries
  • lots of support for developing countries
  • assistance to developing countries
  • “build a better home for mankind”
  • no country is insulated from challenges
  • reaffirm – China’s abiding commitment to peaceful and co-operative development and promotion of world economic growth and stability

Summary:  very optimistic with solutions based on a government controlled and programmed approach to “managing the world economy”.

UPDATE during Q&A:

  • domestic consumption growing by 20% annually
  • despite the enormous growth being experienced he is basically saying additional growth remains their focus
  • Klaus asking now about global Climate Change: – answer – multi year plan, meeting targets, emphasis on coal