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Economy

Vice-Premier warns of worldwide inflation risk

(Xinhua)
Updated: 2011-06-26 07:39
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BEIJING - Chinese Vice-Premier Li Keqiang on Saturday warned the risk of a worldwide inflation while the world strives for an economic recovery.

Facing a common challenge of inflation, all countries should increase the coordination of their macroeconomic policies to ensure economic growth while reining in inflation, he said at the Second Global Think Tank Summit currently held in Beijing.

Within China, inflation has remained stubbornly high despite the government's efforts to cap price rises.

The country's inflation rate reached a 34-month high of 5.5 percent in May, and is expected to accelerate to 6 percent in June, which will be well above the government's 2011 inflation target of 4 percent.

Li said countries should work together to fight trade and investment protectionism, improve and innovate the international economic governance and promote the establishment of a fair, just, inclusive, and orderly international financial system.

He called for efforts to increase the representation and say of emerging economies and developing countries, and bridge the "south-north development gap" between the poor countries and rich nations, which he believed is crucial to the long-term prosperity of the world.

Li said during the coming five years, China will accelerate the transformation of its economic development pattern and strike a balance between maintaining a stable and relatively fast economic growth, restructuring the economy and regulating inflationary expectations.

The country will also boost domestic demand, employ a green development path, and strive to balance economic growth and social development, he added.

The two-day summit, with a theme of "global economic governance: common responsibility," attracts more than 500 politicians, government officials, entrepreneurs and representatives of think tanks from both China and abroad.

Also on Saturday, Li Keqiang met with some foreign participants, including former US Secretary of State Henry Kissinger, and K. C. Sivaramakrishnan, chairman of Center for Research Policy of India.

The vice premier said China is willing to contribute to the global economic recovery and work with other countries to tackle global challenges.

He said participants of the summit should discuss and exchange ideas in order to work out methods to solve international problems.

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