China Premier Wen: To Continue Macroeconomic Control Policies

Chinese Premier Wen Jiabao Tuesday said the government must continue with macroeconomic controls, consolidate its property tightening campaign and bring about a "reasonable" correction in housing prices.
Largely reiterating Beijing's current policy stance, Wen said at a cabinet meeting that authorities need to closely monitor both domestic and international economic trends and be prepared to fine-tune policies "to an appropriate degree" and "at an appropriate time," according to a statement posted on the government's website.
The premier will finish his second five-year term next year and is widely expected to give his seat to Vice Premier Li Keqiang, following a landmark leadership transition set to take place in the Autumn.
Wen's comments were made when discussing the government's annual report to Congress that he will deliver at the opening of China's annual legislative meetings in early March. His remarks also came as the world's second-largest economy has slowed in the past few quarters and Beijing has responded to rising global uncertainties with a mild loosening of lending restrictions.
China's economy has the conditions to maintain stable and fast growth in the long term, Wen said, adding that the economy has been moving in the direction as set out by the government's macro control policies, Wen said.
The government must maintain steady investment growth and keep strengthening credit support for the real economy, especially small- and medium-sized enterprises, he said.
The Chinese premier also maintained tough talk on the country's booming property market. The government will continue policies aimed at curbing speculative investment and promoting "reasonable returns" in property prices, Wen said.
China will take measures to increase the supply of commercial housing and continue the construction of subsidized housing, he said.
In addition, Wen said Beijing will maintain its foreign trade policies in order to achieve steady growth of international trade.
China's gross domestic product growth slowed slightly to 8.9% in the fourth quarter from 9.1% in the third quarter, and economists warned that the country's economic growth is set to slow further, dragged by flat exports and a sagging property market.