China runs ahead with spending torch

03-06-2009 | AFP

The Chinese government is promising eight percent growth

Panama Star But in Europe, stocks retreated as the Chinese strategy unfolded. China faces "unprecedented difficulties and challenges," over the crisis, Premier Wen Jiabao told the annual sesssion of parliament.

He gave some details of stimulus spending to total four trillion yuan (585 billion dollars), promising to boost social programmes massively, but did not roll out a detailed blockbuster spending splurge as some observers had expected.

The country would overcome the crisis, he assured, forecasting that it could still achieve growth of eight percent this year and that this was essential for "ensuring social stability."