China Outlines Stimulus Plans, But Offers No New Boost

Investors looking for more spending

By Jason Farago, Newser Staff

Posted Mar 5, 2009 6:46 AM CST

(Newser) – China's prime minister announced a slate of new construction projects and increased subsidies to keep the country growing amid the global financial crisis. In his annual speech to the country's legislature, Wen Jiabao admitted that China faces "unprecedented difficulties and challenges" and would need to shift policies to push citizens to spend and consume more goods as exports fall. But Wen did not announce any new spending beyond last fall's $585 billion stimulus, reports the New York Times.

Wen set a target of 8% GDP growth for 2009, the same as in previous years, although economists see that figure as optimistic. China analysts said that the government's economic program had two intertwined goals: riding out the crisis and maintaining social order as joblessness rises. "Everything from delivering growth to holding down unemployment, it’s all about stability," said one economist.

[Images (4)]

[Videos (1)]

A live picture of Premier Wen Jiabao is seen on a screen above delegates during the opening session of the National People's Congress in Beijing's Great Hall of the People, Thursday, March 5, 2009. (AP Photo/Greg Baker)

Chinese Premier Wen Jiabao bows while Chinese President Hu Jintao looks on during the opening session of the National People's Congress at the Great Hall of the People in Beijing Thursday, March 5, 2009. (AP Photo/Andy Wong)

China opened the annual session of its legislature Thursday, its first since the global financial meltdown started last year. (AP Photo/Andy Wong)

Chinese President Hu Jintao shakes hands with his Premier Wen Jiabao at the Great Hall of the People in Beijing Thursday, March 5, 2009. (AP Photo/Andy Wong)

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The BBC reports on Wen Jiabao's speech to the National People's Congress. (MrTacoJosh)

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China Outlines Stimulus Plans, But Offers No New Boost