China economy shows ‘positive signs’: Wen

Wen said China’s policymakers have taken swift action to support the world’s third largest economy in the face of the worst global crisis since the 1930s Great Depression.

“Chinese government policy has been timely,correct and decisive,” he told reporters at his hotel in Thailand’s beach resort of Pattaya,which is hosting a summit of Asian leaders.

“China’s economy has shown some positive signs,but we can all see that our economy still faces some very big difficulties,” Wen said.

The Chinese government chief was scheduled to meet with Southeast Asian leaders earlier on Saturday for a summit to sign a joint investment agreement,but Thai anti-government protesters blockading his hotel forced a delay in that meeting.

China,the only economy among the world’s top five that is still growing,was hit hard by a plunge in exports and Beijing has been trying to soften the blow by boosting investment and spending at home with a 4 trillion yuan ($585 billion) stimulus.

Wen was speaking shortly after the central bank data showed the country’s banks lent a record amount of new local currency loans,in a latest sign that the economy was gaining steam after a sharp slowdown in the final months of 2008.