Chinese PM Vows to Keep Reforms on Track

http://www.arabnews.com/?page=4§ion=0&article=87535&d=2&m=10&y=2006

Tang Li, Arab News


BEIJING, 2 October 2006 — China’s Prime Minister, Wen Jiabao has vowed that China will continue to fight domestic corruption and continue with economic reforms that would open up its economy to the rest of the world.

Wen, who was addressing the senior Chinese leadership and diplomatic community on the eve of the 57th anniversary of the founding of the People’s Republic of China told his 1,500 strong audience that China had created a historic miracle by achieving three decades of rapid and sustainable economic growth as well as all-round social development.

He pointed out that China would become a prosperous, democratic, culturally advanced and harmonious modern socialist country if it adhered to the path of scientific development. Wen said, “We’ll unswervingly push for reform and opening up,” and he noted that, “This trend is irreversible.”

He also stressed that the government would continue to fight against corruption so as to provide, “A clean and honest government to ensure social fairness and justice and improve the socialist system.”

This aspect of his speech had been particularly prominent as it had come after a week of heavy political action which saw the sacking of Shanghai’s Communist Party Chief, Chen Liangyu.

Chen who was sacked over the alleged misuse of funds from the city’s pension fund, was also suspended from his duties in the politburo. Chen’s dismissal has been seen as a sign of Chinese President Hu Jintao consolidating his power from his predecessor, Jiang Zemin.

On the international front, Wen briefly touched on Taiwan, which Beijing regards as a renegade province.

He told the audience that, “We will continue to work with our compatriots in Taiwan to achieve peaceful reunification of the motherland.”

The Chinese government was however more accommodating toward others in its foreign relations. The Central Bank noted that China would maintain stability in the yuan’s exchange rate as well as in its monetary policy.

The bank said it would continue to drain funds from the financial system as part of the effort to improve the yuan’s managed float.

The yuan completed its biggest monthly advance since a link to the dollar ended last year, as traders wagered China will allow faster appreciation to reward Treasury Secretary Henry Paulson for persuading US senators to drop the threat of trade sanctions.