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Economy to Dominate Annual Chinese Gathering
By Michael Wines, The New York Times

China's national Legislature begins its tightly scripted annual meeting on Thursday with an agenda dominated by the ruling Communist Party's two overriding concerns: riding out the global economic crisis and keeping citizens' unhappiness with their lot from boiling over into public unrest.

In the nine-day session of the National People's Congress, about the only suspense involves whether the government will propose to add still more stimulus spending to the $584 billion that China's leaders already have pledged to help the slumping economy. On Wednesday, Asian and European stocks rose in part on hopes that it would.

Prime Minister Wen Jiabao is to speak early on Thursday to the 3,000-odd delegates, and is expected by many analysts to set a target for 8 percent growth of China's gross domestic product in 2009, the same as in previous years. The government has long said that that rate is needed to hold down unemployment and the potential for social unrest. The economy logged a 9 percent rate last year, even after a sharp slowdown in the last quarter.

But a number of experts believe that a 2009 growth rate of 6.5 percent or 7 percent, meager by recent Chinese standards, is increasingly likely. Some financial analysts predicted this week that the government will propose spending vast new amounts to head off a sharper decline, although the consensus view is that new spending, if any, will be more modest.


by Magnifico on Wed Mar 4th, 2009 at 05:20:14 PM EST
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