To counter the impact of the international financial crisis and maintain steady and relatively fast economic growth, China has made timely adjustment to its macroeconomic policies, swiftly adopted a proactive fiscal policy and a moderately easy monetary policy, and formulated a package plan to expand domestic demand and boost economic growth. We have substantially increased government spending, introduced a two-year investment plan totaling RMB 4 trillion, and carried out structural tax cuts. We have repeatedly lowered interest rates and increased liquidity in the banking system. We have implemented industrial restructuring and rejuvenation plans on a large scale and vigorously promoted scientific innovation and technological upgrading. We have worked hard to conserve energy, reduce pollution and protect the eco-environment. We have made further efforts to adjust the distribution of national income and worked energetically to expand domestic markets, especially rural markets. And we have significantly raised the level of social security. These measures are producing positive initial results, including fairly strong domestic consumption demand, steadily rising investment demand and overall social stability. It shows that China’s approach in response to the financial crisis is pragmatic and the policies are active and effective. The array of measures adopted by China will have a positive impact not only on its own economy but also on the economy of the region and the world at large.
In the face of the international financial crisis, we will continue to follow the basic state policy of opening-up and unswervingly pursue a win-win strategy in opening to the outside world. It is our firm belief that a more dynamic and open China will be in a better position to not only maintain steady and relatively fast economic growth at home, but also contribute to the global efforts to tackle the financial crisis and promote world peace and development.