Wen Jiabao, the Chinese Premier, closed the National People’s Congress session today with grim warnings that the global economy risked plunging into double-dip recession and that China itself faced a “complicated” year.
Mr Wen’s note of alarm for the global economy was based on the still high state of unemployment in many of the markets that buy Chinese exports. Sovereign debt problems and exchange rate instability, he said, created the risk that the world economy could tumble back into a second recessionary downturn.
His speech included an aggressive defence of Beijing’s currency policy – the emergency decision made at the height of the financial crisis to re-peg the yuan and stop the steady appreciation against the dollar which began in 2005. (more)
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