Zhu: China Implements Right Economic Policy

Chinese Premier Delivers A Speech in Brussels

Chinese Premier Zhu Rongji said in Brussels Tuesday that China's economy has overcome the difficulties and unfavorable effects arising from the Asian financial crisis since the government has carried out a right policy

Delivering a speech at Club De Gaulois in Brussels to more than 250 European business leaders, Zhu said that the Chinese government has implemented an active fiscal policy, a steady monetary policy and a policy to restructure its industry.

In the first six months of this year, China's economy has shown a major favorable turn, which proved that the government's economic policy is right, said Zhu, who is visiting Belgium and the European Union headquarters.

Pointing out that China is mapping out its 10th five-year plan, Zhu said that China, in the next five years, will continue to adjust its economic structure, revitalize the country through developing science and technology, deepen the reform of the economic system, and further open to the outside world.

As a result, it will be certain for the Chinese economy to realize sustainable, speedy and healthy development, he told the members of the Union of Industrial and Employers' Confederations of Europe (UNICE), the representative of the European business community.

Zhu emphasized that China's opening to the outside world will enter a new phase after the country joins the World Trade Organization (WTO). China will stick to its commitments to WTO obligations while enjoying equal rights with the other 135 WTO members.

Therefore, he said, China will gradually open its domestic markets, relax limitations on foreign investment in some regions, improve its legal system, increase transparency in its regulations and laws, government policies and management, improve environment for foreign investment, protect intellectual property and the rights of foreign businessmen under the law.

Noting the WTO entry would affect certain sectors and enterprises in China, Zhu said that the Chinese people will have the courage and wisdom to deal with various difficulties in the future.

The government is making preparations for such difficulties, including deepening reforms in state-owned enterprises, improving their capability in technological innovation and management, increasing their market competitiveness and ability against risks, creating more jobs and promoting re-employment in various forms, the premier said.

Meanwhile, Zhu said, the government is speeding up the establishment of a well-founded social security system to ensure social stability and national security.