China's stimulus package plan not fully understood

BEIJING -- Premier Wen Jiabao said here Friday that China's stimulus package plan was not fully understood by the world.

"Rumors and misunderstanding set the world stock market on a roller coaster ride," Wen told reporters after the National People's Congress closed its annual session.

China has announced a 4 trillion-yuan (585 billion U.S. dollars) two-year economic stimulus package to boost growth and domestic demand, 1.18 trillion yuan of which will be funded by the central government.

The stimulus package plan include four major components, including large-scale government spending, industrial restructuring and rejuvenation, scientific research and social safety net.

Wen said large-scale government spending is the most direct, powerful and effective measure (to boost domestic consumption) and the 1.18 trillion yuan from the central government is new investment.

Wen said the 1.18 trillion-yuan central government investment include projects concerning people's wellbeing, technology upgrading, environmental protection and major infrastructure projects.

Other projects, including the 600 billion-yuan tax cut, old-age pension increase for enterprise retirees, salary increase to 12 million teachers, subsidies to farmers as well as an 850 billion-yuan three-year investment in health care reform were not included in the 4 trillion-yuan stimulus package, Wen said.

• 政府注資 pump priming
• 軟環境 soft environment
• 糧食最低收購價 crops' minimum purchase prices

• 保八 Eight Percent Protection
• 以人為本 Put People First
• 農民企業家 Farmer-turned-entrepreneur
• 窗口指導 window guidance
• 下崗再就業 Re-employment after being laid off
• more

• China boosts domestic demand, spurs growth to fight crisis
• Experts have their say on financial crisis
• China not yet free of crisis fear
• Economist: Deficit no cause for alarm
• Crisis 'can bring China, US closer'
• more

• German media give full coverage to Premier's report
• Overseas press praise China's 8% economic growth
• German media: Economy tops agenda at NPC session
• From the foreign press
• World media keeps close watch on 'two sessions'
• more

• Corruption top issue for public
• China adopts Food Safety Law
• China's economic growth in 2009
• more