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Premier Wen 'concerned' with US financial crisis

(Agencies)
Updated: 2008-10-01 14:08

BEIJING -- Chinese Premier Wen Jiabao is "concerned" with the financial crisis in the United States but he played down comparisons with the Great Depression, comments reported in media on Wednesday.

Wen, who made the remarks last Wednesday at a meeting with US business leaders and economists in New York, added that he still has confidence in the US economy.

"We pay close attention to the problems in US finance," Wen was quoted as saying in the overseas edition of the People's Daily.

"What is the actual degree of the problem? How will it develop? What will be the effect on the United States and the world? I'm very concerned," he said.

The US economy has a sound base and it was not like the 1930s, when the Great Depression left millions without work, he said.

"Facing up to a crisis, the crux is to pluck up one's courage and be confident, as these are more important than gold or currency," Wen was paraphrased as saying.

Wen said he hoped efforts taken by the US government to reassure and bolster the financial markets would work.

While he admitted China's export-driven economy could be impacted by a slowdown in foreign demand, the country may be able to limit the fallout by boosting domestic demand.

"We must make a foothold in expanding domestic demand," Wen said.

"In the changing situation, China must strengthen macroeconomic controls, take flexible, cautious and extremely resilient policies, maintain macroeconomic stability, financial market stability and capital market stability," he said.

Wen said in an interview last week that Beijing was worried about the impact of the financial turmoil on its investments and that now was time to cooperate to calm markets.