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China's Macroeconomic Control Policies Prove Fruitful

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Zuo said the 4,000 billion Yuan (US$27,310 billion) government investment played a critical role in not only stabilizing the Chinese economy, but also contributing to global economy.

"The Chinese government's control policy should receive very positive evaluation," she said.

Meanwhile, she said there are problems that the country should be concerned with during the recent round of adjustment.

"The Chinese government fully recognized the problems and risks and has taken actions accordingly," she said.

Regarding inflation, Zuo said, "There are very many complicated reasons for inflation."

"It happens regularly in an economy," she said, "Many people misunderstood it and worried too much."

She said that China, a country with a growth rate of about 10 percent, is capable of handling an inflation rate of about 5 percent.

"If there are no unexpected events this year, the Chinese government should be able to control its inflation rate between 3 and 5 percent," she said, "On the other hand, inflation can be taken care of through subsidizing people with low income and applying price limit to certain products."

(Xinhua News Agency May 24, 2010)

 

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