China's Wen says controlling inflation still goal

AP News
Posted: Aug 31, 2011 7:35 AM

The Chinese government remains focused on reining in surging prices despite global instability and has no plans to change controls that have caused its economy to slow, said Premier Wen Jiabao in comments released Wednesday.

The global slowdown has prompted suggestions Beijing might ease its controls, but Wen said in comments on the Cabinet website that the cooling in China's rapid economic growth is in line with government plans. Wen is the country's top economic official and No. 3 in the ruling Communist Party hierarchy.

"Stabilizing general price levels still is the most important mission of macro-controls and the orientation of macro-controls cannot change," Wen said in an essay to be published Thursday in a party magazine, according to the website.

Beijing has hiked interest rates repeatedly and tightened investment curbs to steer rapid growth to a more sustainable level just as the United States and other major economies are trying to shore up their weak economies.

China's economy expanded by 9.5 percent in the April-June quarter and inflation rose to a 37-month high of 6.5 percent in July.