<China's Economy> China's Economy to Grow,Premier Zhu Rongji
Hi Kemble:
Good news form China.
February 27, 1999 More News
Premier: China's Economy To Grow
MOSCOW, Feb 26, 1999 (AP Online via COMTEX) -- China's economy will grow at least 7 percent this year in spite of Asia's economic turmoil and its currency will not be devalued, Chinese Premier Zhu Rongji told businessmen Friday on the third day of his trip to Russia.
''Our national currency, the yuan, remains steady because we maintain a trade balance and large currency reserves,'' Zhu said. ''I assure you that there will be no devaluation in China.''
He also said China's gross domestic product would grow by ''no less than 7 percent'' in 1999, compared to 7.8 percent in 1998.
The Asian economic crisis has to date had only a limited impact on China's growth, but it contributed to last year's economic meltdown in Russia, where the economy shrank about 5 percent last year.
Chinese and Russian officials were upbeat about their talks this week, expressing hope that renewed cooperation will boost falling trade and other economic ties that have been set back by Russia's economic crisis and a slowdown in China's growth.
The two sides signed 11 agreements Thursday, including deals on intellectual property protection, oil supplies to China, and building oil and gas pipelines.
Zhu said the prospects for bilateral cooperation were good because Russia has natural resources that China lacks, such as oil, gas and timber. He said China could export agricultural goods to Russia at low prices, and set up joint ventures in Russia to manufacture televisions, air conditioners, refrigerators and other household appliances.
Trade between Russia and China slumped to $5.5 billion in 1998, down from $6.1 billion in 1997 and $7 billion in 1996.
But political ties between Moscow and Beijing have gathered strength in the 1990s after decades of hostility, and China has become the top customer for Russia's cash-strapped defense industries, purchasing fighter jets, missiles, submarines and destroyers. Russia and China have agreed to build a nuclear power plant in China, but the agreement has been stalled because of financing problems.
Zhu plans to visit a plant in St. Petersburg that manufactures equipment for nuclear power plants on Saturday before heading home.
By VLADIMIR ISACHENKOV
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