China sees signs of economic recovery but prepares for worse

China sees signs of economic recovery but prepares for worseBeijing  - Chinese officials on Friday said they saw some signs of economic recovery after the impact of the global financial crisis but had prepared contingency plans amid "great uncertainty."

"There are already signs of recovery, including a rebound of consumption, investment and some product prices," Zhang Ping, China's chief economic planner, told reporters.

The government would consider adding to its 4-trillion-yuan (585- billion-dollar) stimulus package depending on global financial developments, Zhang said on the sidelines of the annual National People's Congress, China's nominal parliament.

Asked whether China might allow its currency to depreciate to support trade and economic growth, Zhou Xiaochuan, the governor of the central bank, said it would not announce any plans until it was clearer on the "great uncertainty" as to how the financial crisis would unfold in Western nations.

Zhou said China would keep its policy of maintaining the exchange rate of its currency "basically stable at an appropriate and balanced level."

He said the government's broad strategy was to "act faster and take more forceful measures" to bolster confidence in the economy.

"We have learned lessons from some countries that once the confidence dips, it needs a fairly long time to restore," he said. (dpa)

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