China brushes away fears of stimulus package

Hu Jintao, the Chinese President, warned last week that the current global economic crisis is deeper than the west admits.

At the Asia-Pacific economic summit, he said that continued economic growth in the emerging Asian economies would help to maintain economic growth.

China is already an important stabiliser in terms of financial stability and maintaining global economic development although growth has slowed from 11 percent to 9 percent in the third quarter.

China has put together a four trillion yuan (586 billion dollar) stimulus package in order to protect the manufacturing hub of the world. However, the country has repeatedly indicated that it must focus its attention on maintaining domestic growth.

The nation faces a challenge to prevent a slump, although the government has demonstrated its ability to put together investment projects in order to maintain growth and protect construction.

Although many have been planned in terms of infrastructure development, many have not yet been started due to the lack of money which has left a sour taste in the mouth of investors.

With the failure to cut interest rates and the slow reaction of implementing the proposed stimulus package, the Shanghai Composite Index falling has fallen by 3.7 percent to 1,897.06.

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