Notwithstanding the signs of economic recovery, China today ruled out withdrawal of the $586 billion stimulus package announced in the wake of the economic slowdown in 2008, saying key sectors have not show any "fundamental improvement".
Chinese premier Wen Jiabao also made it clear that his country, world's third largest economy, will not be bullied into altering its exchange rate policy at the beck and call of the developed countries.
Wen said 2010 would be the "most complicated year" for China, which needs to strike a balance between maintaining arelatively fast and stable development, economic structural adjustment and management of inflation expectation to avert a
possible economic "double dip" this year.
"It is true that the Chinese economy has stabilised and is turning for the better. But I should also point out that there has not been a fundamental improvement in the operations of many Chinese businesses and a lot of them are still reliant on the stimulus measures," 67-year-old Wen told the annual customary press conference here today.
China had in late 2008 announced a $586 billion stimulus package to prevent the impact of the financial crisis on its economy, which was growing at double-digit.
Beijing registered a blistering 10.7% growth in the fourth quarter of 2009, indicating that worst was over for the country on the economic front.
