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China says too early to exit fiscal stimulus

(Xinhua)
Updated: 2010-05-22 04:00

BRUSSELS -- It remains too early for China to carry out an exit strategy by phasing out fiscal stimulus, Chinese Minister of Commerce Chen Deming said here on Friday.

"There are still a lot of uncertainties in the world economy. Therefore we believe it is too early for us to talk about an exit strategy from our stimulus package," Chen told reporters after a meeting with European Union (EU) Trade Commissioner Karel De Gucht.

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"The Chinese government will continue to implement a proactive fiscal policy and a moderately easy monetary policy," he added.

Chen said the current debt crisis spreading in the euro zone just highlighted how fragile the global economic recovery is and world governments should remain alert to trade protectionism.

"There is still uncertainties and tough way ahead. As the world is going through an economic recovery, countries across the world need to make concerted efforts to stand against protectionism and support liberalization of trade and investment," he said.