Chinese Premier Wen Jiabao (L) smiles during an exclusive interview with Xinhua News Agency at Ziguangge building inside Zhongnanhai, an office compound of the Chinese central authorities at the heart of Beijing, capital of China, Dec. 27, 2009. (Xinhua/Yao Dawei)

    CHINA'S PERFORMANCE IN ADDRESSING ECONOMIC DOWNTURN

    "We have stabilized economic growth and employment and maintained social stability over the past one year, which is a comfort to me," Wen said.

    However, it is too early to grade the performance as the global financial crisis was not over yet and much more work was required, he said.

    "The financial crisis is not yet over..., but our work so far indicates that our measures are effective. People across the country should be proud of it," Wen said.

    CHINA'S ECONOMIC POLICIES, STIMULUS PACKAGE

    China will stick to the pro-active fiscal policy and moderately easy monetary policy to buoy the economy in 2010 as there are still many uncertainties ahead both at home and abroad, Wen said.

    "To withdraw macro-economic policies too early is likely to ruin the efforts made before and reverse economic development," he said.

    However, he acknowledged the Chinese economy could have been better "if our bank lending had been more balanced, better structured and not on such a large scale."

    OVERCAPACITY WORRIES

    Wen noted that the problem of industrial overcapacity in China had no relation with the central government's investment in the 4-trillion-yuan (585.6 billion U.S. dollars) stimulus package.

    "I can guarantee that the 1.18-trillion-yuan investment the central government planned for 2009-2010 has not been and will not be spent on any industrial project," he said.

    "To resolve the problem of overcapacity, the most important thing is to take economic, environmental, legal and, if necessary, administrative measures to eliminate outdated capacity and, in particular, restrict the development of high-energy-consuming and polluting industries with excess capacity," Wen said.

    APPRECIATION PRESSURE OF YUAN

    Wen said China would not yield to foreign pressure for the appreciation of its currency yuan, or renminbi, in any form.

    "A stable Chinese currency is good for the international community," he said, adding that the move of some countries to demand the yuan's appreciation while practicing trade protectionism against China was in essence aimed at checking China's development.

    PREVENTION OF POSSIBLE INFLATION

    Wen said preventing inflation would ensure a stable environment for economic development and protect the interests of the people, as maintaining stable and rapid economic growth was a top economic priority next year.

    "China is not facing an inflation issue at the moment... but we should foresee such a possibility and maintain consumer prices at a reasonable range, especially in a country with imbalanced income distribution and a widening income gap," he said.

    SOARING PROPERTY PRICE

    "I have noticed complaints on the Internet, sometimes even harsh criticisms, about housing prices," Wen said.

    "As the property market is recovering rapidly this year, housing prices in some cities are rising too fast, which deserves the 'great attention' of the central government," he said.

    Wen promised to maintain order in China's property market while cracking down on illegal activities that had driven up housing prices, including hoarding of land, driving up housing prices and delaying sales for bigger profits.

    IMPROVING PEOPLE'S LIVELIHOOD

    Wen said China would advance the reform of its decades-long household registration system in a steady manner, in a bid to ensure migrant workers to have equal rights as city dwellers.

    "Farmer-turned workers who have been living in cities with a stable income are a priority. Besides, the government will create policies to encourage migrant workers to settle down in small and medium-sized towns and cities, as big cities have limited capacities," Wen said.

    DEFENDING CHINA'S DEVELOPMENT RIGHTS

    Wen urged the world to understand the fact that development remained the top priority of developing countries.

    While China would not follow developed countries on their path to industrialization at the price of environment, "we must fight for China's due rights for development," Wen said.

    He also urged all nations to recognize the hard-won results of the Copenhagen climate change conference this month and build consensus for future action against climate change.

    ROLE OF SCIENCE & TECHNOLOGY

    China should rely on science and technology to change its growth pattern, Wen said.

    "It is a structural problem for China's economy, which is still unbalanced, uncoordinated and unsustainable," Wen said.

    Wen said the country should continue to give full play to its advantage in the manufacturing sector, while strive to develop key are as related to the environment and people's living, such as the Internet, green economy, low-carbon economy, environment protection technology and biomedicine.

    NEW YEAR'S HOPE

    Wen urged the Chinese people to beware of possible hardships and crises in the upcoming year and to work hard for a more promising future.

    "China has a great deal of hope in its future," he said, though the way ahead would be "a bumpy road."

    "The Chinese people have gone through so many disasters. And it is one eminent tradition of our nation to be independent, indomitable and fearless," he said.