Lesson from China: Hu Jintao

Chinese President Hu Jintao said China can help alleviate the impact of the financial crisis and slowing global growth by stoking its own economy.

Steady and relatively fast growth in China is in itself an important contribution to international financial stability and world economic growth.

China announced a $586 billion economic stimulus, focused on building low-rent housing, roads, railways and airports. The package also allows tax deductions for fixed assets such as machinery to stimulate investment. Farmers will also benefit from more subsidies.

China has taken an active part in the international cooperation to deal with the financial crisis and played a positive role in maintaining international financial stability and promoting the development of the world economy. Hu suggested that rich countries must take the lead in addressing the crisis.

Developed nations “should undertake their due responsibilities and obligations” by stabilizing their economies, restoring growth and taking steps to “safeguard investors’ interests”.