Premier Wen: China economy still sound and stable

China's Premier says it is vital to stick to policies that ensure rapid but sound economic growth while taking into account a challenging global environment and the need to tackle domestic inflation. Wen Jiabao was speaking during a tour of Shanghai and nearby Jiangsu Province.

During an economic fact-finding tour in Shanghai and Jiangsu Province, two economic power houses in eastern China, Premier Wen Jiabao said general economic development in the country is still on track. He added that the central government will make fighting inflation the top priority in macro-economic policy. Wen Jiabaoalso stressed the need to maintain sound and fast development. Local manufacturers and exporters say they are having a difficult time because of tighter lending policies and rising labor and material costs. But Wen Jiabao explained that this was also a chance for these companies to alter their traditional approach. He said he was glad to hear about new developments in high-tech sectors, achieved via structural adjustment and innovation.

Wen Jiabao said, "I am really glad to see that your factory can still keep exports up despite higher costs. This means Chinese companies are able to overcome tough challenges and raise their competitiveness during a difficult period."

Wen Jiabao inspected enterprises in both ur and rural areas in Jiangsu. He pointed out that Jiangsu needs to balance economic growth between different regions and between urban and rural areas. While meeting local officials, Wen Jiabao emphasized the importance of promoting agricultural production and helping farmers increase their income. He also called for every effort to boost employment and promote social development.

In Shanghai, Premier Wen Jiabao encouraged relevant departments to carry out scientific advancement. He called for further development of the service sector, to strengthen the financial hub's domestic and international position.