WORLD BANK LOOKING AT CHINA FOR ENCOURAGEMENT

China’s efforts to stabilize its economy were paying off and helping to promote a recovery from the global financial crisis, World Bank President Robert Zoellick said on Wednesday. Zoellick praised China’s “decisive action” to help stabilize its economy and its persistence in trying to expand domestic demand as exports have fallen.
Fuelled by the government’s 4-trillion-yuan (590 billion dollars) spending package, China had achieved an initial rebound in economic growth that was driven mainly by domestic demand, he said. The rebound caused a jump in China’s imports of raw materials, machinery, equipment and other goods.
“China’s trading partners are benefiting from this domestic demand and that is helping to strengthen levels of confidence across the world,” Zoellick said.
Zoellick also welcomed China’s promotion of energy efficiency and reductions in carbon emissions through its economic stimulus package.
Zoellick said he discussed the Chinese economy and the global recovery with Wen on Tuesday. State media quoted Wen as saying China would stick to its policy of relying mainly on government spending to stimulate the economy “at a critical stage in its recovery.”