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Chinese Premier Wen Jiabao said Saturday that he was confident about China's economic development in 2010, even though it would be "the most complicated year" for the nation's economy.
"Last year was the most difficult year for China's economic development in the 21st century, while this year will be the most complicated," Wen said during an online chat with Internet users.
"We will consolidate the economic recovery while addressing new challenges," he said.
Growth of the world's third largest economy was 8.7 percent in 2009 and the annual growth rates of China's economy between 2003 and 2008 ranged from 9.6 percent in 2008 to 13 percent in 2007.
"The top priority is balancing stable and comparatively fast economic growth with the adjustment of the economic structure and the transformation of the development pattern, while keeping inflation in check," Wen said.
"I have confidence in China's economic development," he added.
PREVENTING INFLATION OUTBREAK
The Premier said he attached great importance to the issue involving prices, which along with the problem of corruption could affect social stability and even the political situation.
Wen said he checked on consumer price lists everyday, with the commodity ranging from rice, flour, pork, beef to vegetables.
Inflation in China is reemerging after nine months of deflation.
China's consumer price index (CPI), the main inflation gauge, rose 1.5 percent year on year in January this year, according to the National Bureau of Statistics (NBS). For the full year 2009, the CPI fell 0.7 percent.
China will continue to implement a "moderately loose" monetary policy and ensure stable and comparatively fast economic growth while managing inflationary prospects, he said.
"I believe we will be able to maintain stable and comparatively fast economic growth while keeping consumer prices in check," the Premier said.
ENSURING HEALTHY PROPERTY MARKET
In response to netizens' complaints about soaring housing prices, Wen said he was determined to tame the "wild-horse" housing market and to keep prices at a reasonable level within his term as Premier.
China's property prices in 70 major cities, a housing price trend barometer, increased 9.5 percent year on year in January 2010, showing the continuing home price rising momentum, which triggered new government concerns and public complaints.
Home prices in these 70 cities rose 1.5 percent in 2009 year on year.
"Huge population, coupled with limited land, made people's access to houses a problem," Wen said, adding it was key to increase supply to solve the problem.
Wen said he knew the feeling of the "Dwelling Narrowness" as his five-member family lived in a room of nine square meters for quite a long time when he was a child.
"Dwelling Narrowness" is a Chinese household-name TV drama put on in 2009, which depicts the lives of modern-day young people under the pressure of rocketing housing prices.
He said the government would step up efforts to increase the supply of affordable houses, encourage reasonable house buying while curbing speculative demand, and punish developers who hoard lands and completed houses in anticipation of price increases.
EMPLOYMENT SITUATION STILL GRIM
Although labor shortage has been plaguing some booming cities in China's coastal areas, the country is still facing serious challenges in employment, the premier said.
"Every year 150 million migrant workers leave their rural homes to look for jobs in cities, 24 million urban unemployed are waiting for jobs, and the number of university graduates will hit a record high of 6.3 million this year, all adding up to our employment pressure," Wen said.
Three factors might contribute to the recent labor shortfall in coastal regions -- increasing worker demand as a result of economic recovery, skilled worker shortage and workers' growing awareness of their own rights and interests, he said.
Wen said the government encouraged college graduates to start their own businesses and the government provided for many favorable policies in this regard. The government also called on them to work in relatively underdeveloped central and western regions, border regions and rural areas under such grim employment situation.
According to the NBS, the country's urban registered unemployment rate stood at 4.3 percent in 2009, with 9.21 million people unemployed. The rate was 0.1 percentage point higher than in the previous year.
