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China ready for new stimulus measures

Wen Jiabao - Plans to deal with financial crisis
Wen Jiabao - Plans to deal with financial crisis

The Chinese prime minister says his government is ready to introduce more stimulus measures if necessary to maintain economic growth.

However, Wen Jiabao admitted reaching the target of 8% growth set last week would be tough.

He was speaking after the annual session of China's National People's Congress.

'We already have plans ready to tackle even more difficult times,' Mr Wen said.

'To do that, we have reserved adequate ammunition, which means that at any time we can introduce new stimulus policies.

'People are all very concerned about whether China can attain the goal of about 8% GDP growth this year. I admit that it will be difficult.

'That being said, I also believe that with considerable effort it is possible for us to attain this goal.

'We are prepared to tackle a protracted and very difficult international financial crisis and we have already reserved leeway for ourselves in our policy formulation.'

China is the world's biggest lender to the US and the prime minister said he was a little worried about the safety of those bonds.

He urged the US to retain its creditworthiness and protect China's assets.