Voice from London

Reuters: China central bank to keep yuan basically stable 06/03

China's central bank pledged on Saturday to keep the yuan's exchange rate basically stable in 2010 and said it will enhance coordination with its foreign counterparts on major policy issues.

The People's Bank of China will continue to push forward multi-polarization of the international money system, according to a statement issued ahead of a news conference on the sidelines of the annual session of parliament.

The central bank said it would keep sufficient liquidity in the banking system and further encourage domestic banks to issue yuan bonds in Hong Kong.

Financial Times: China targets 8 percent economic growth 05/03

Opinion in China is sharply divided between officials who warn of the risks of rising property prices, inflation and overheating, partly as a result of the massive monetary stimulus last year, and others who believe the economy remains fragile despite the high headline growth.

Mr Wen sought to find a middle path, stressing that the government would maintain a "proactive" fiscal policy and "moderately easy" monetary policy – which has been the official policy formulation for months – but also making clear that he was aware of potential dangers.

Despite considerable speculation that the government was preparing a big announcement about reforming the hukou system of residency permits, which would provide more rights to migrant workers in urban areas, he said little on the subject other than that the rules would continue to be relaxed in some smaller towns and cities.

Telegraph: China's Wen says economic turnaround is not yet fundamental improvement 05/03

Delivering his annual 'state of the nation' address, Mr Wen said that after leading the world out of the global financial crisis China now faced a "crucial year" in which it must curb inflation and lay the foundations for stronger internal consumer demand.

Setting a target of 8pc economic growth for 2010, which is below the expectations of many economists, Mr Wen promised increased social security spending on the rural poor and the migrant workers who form the backbone of China's economy.

After a year in which the financial crisis exposed China's dangerous over-reliance on exports, Mr Wen appeared to heed recent calls to relax China's household registration system which prevents migrant workers fully settling in China's town and cities.

Guardian: China pledges to close poverty gap 05/03

The Chinese premier Wen Jiabao today promised increased spending on welfare and rural areas, aiming to halt the growth of the gap between rich and poor, maintain stability and spur domestic demand.

His annual policy speech set a steady course for the country – with a growth target of 8%, as in previous years – but left the government room for flexibility as he cautioned that the global economic outlook remained uncertain.

Making the case for increased social spending, as he has done in recent years, he added: "We can ensure that there is sustained impetus for economic development, a solid foundation for social progress, and lasting stability for the country only by working hard to ensure and improve people's well-being."

The premier pledged: "We will not only make the pie of social wealth bigger by developing the economy, but also distribute it well."