Voice from London

Financial Times: Bank deposits pose challenge for Beijing 03/03

This time last year, when the global economy seemed to be in freefall, Wen Jiabao, the Chinese premier, described 2009 as the most "difficult" year China had faced in a decade. This year he says the conditions are the most "complicated".

Near the top of Mr Wen's list of challenges is how to exit from the massive monetary stimulus that China engineered last year, which saw credit expand by 30 per cent while the economy grew 7 per cent in nominal terms. Mr Wen needs to move soon to prevent inflation from taking off but not so hastily that the economy slumps again.

The situation is complicated for Chinese policymakers by record levels of bank deposits. For the past few weeks, global markets have focused intently on the amount of new credit that Chinese banks are issuing, looking for signals on potential tightening.

Yet for some observers, high bank deposits are just as important because they could indicate that the authorities have less control over monetary policy than many investors think. It is an issue that has attracted the attention of China's State Council.

Reuters: China parliament examines growth, living standards 03/03

The annual full session of the National People's Congress (NPC) will open with a report by Premier Wen Jiabao, who with President Hu Jintao is entering the last stretch of a second five-year term steering the world's third-biggest economy.

Wen's report and the 10 or so days of discussions will address strains worrying China, including fast-rising property prices, income inequality and a skewing of loans and investment to projects favored by local governments.

Hu and Wen will also be looking to secure their influence by pushing improvements to welfare, health care and schooling, especially for China's 700 million-strong farming population.

The parliament may discuss proposals for spending and policy goals in the next government five-year development plan from 2011.

Independent   02/03

This year the NPC was expected to be a dry affair, with the focus on China's economy in the face of challenges from rising property prices and inflation.