Voice from London

Reuters: China's Wen seeks to reassure Taiwan on trade deal 14/03

Chinese Premier Wen Jiabao said on Sunday that a free trade-style deal with rival Taiwan would spare the island's much smaller economy, as China tries to calm fears the agreement could lead to a flood of cheap imports.

Wen, speaking at his annual news conference, said the proposed economic cooperation framework agreement (ECFA) with Taiwan should hurt neither the island's farmers nor small businesses.

"I believe that in negotiating this agreement, we need to consider the size of the economy and trade conditions as well as the interests of both sides," Wen said.

"We need to keep in mind Taiwan's small businesses and ordinary people, and the interests of farmers in Taiwan."

Positive signs for the trade deal are seen firming Taiwan's stock and currency markets, which have gained on signs that export-reliant Taiwan is getting closer to economic powerhouse China despite decades of hostilities.

Reuters: China’s Wen says external pressure on yuan not helpful 14/03

Chinese Premier Wen Jiabao said today that external calls for yuan appreciation were unhelpful, vowing that Beijing would stick to its own course for currency reform while also warning of global economic risks.

Blending his trademark folksy tone with assertiveness born of leading the world’s fastest-growing economy, Wen made clear that China would decide for itself whether and when to let the yuan rise again after re-pegging it to the dollar since mid-2008.

China’s ruling Communist Party has sought to use the Party-run parliament to promote plans to raise welfare spending for farmers and other poorer citizens, even as the government tightens its belt after a burst of feverish spending last year.

But the parliament meeting has coincided with the release of data suggesting China faces inflationary pressures that could require more intensive policy tightening, and also by insistent international calls for Beijing to let the yuan appreciate.

Reuters: China's Hu tells military to obey national priorities 12/03

After an announced slowdown in official defence spending, China's President Hu Jintao has told military commanders that defence modernisation remains a priority but must integrate with economic development.

"The military must conscientiously obey and serve the broader picture of the tasks of the Party and country," Hu told a meeting on Friday of military commanders and PLA representatives attending the nation's annual parliament session, which ends on Sunday.

China "must more conscientiously integrate national defence and military development into the system of national economic and social development," said Hu.