Inflation is our top concern, asserts China Premier

Premier Wen Jiabao on Wednesday said that China would expand the “breadth and depth” of the openness of its economy and pledged to intensify efforts to ensure “clean” government, as he listed curbing inflation and preventing overheating of the economy as top priorities. “Reform and opening up is a major and crucial choice that is shaping the destiny of contemporary China,” Wen said in his address to members of the National People’s Congress. Identifying the current price hikes and increasing inflationary pressures as the “biggest concern” of the people, he said, all “powerful” measures must be taken to step up effective supply while curbing excessive demand. He added that the government would limit or ban foreign investment in projects that were energy intensive or highly polluting and in some areas of resource exploitation and “correct illegal practices”. Wen said China expects a budget deficit of $25.4 billion this year, down 27 per cent from last year. He projected China’s Gross Domestic Product would grow at 8 per cent and rise in the Consumer Price Index should be held at 4.8 per cent as he set the targets for 2008.