Caution is the watchword in Beijing.
With storm clouds gathering over the American economy and years of deflation a very recent memory at home, Chinese Premier Zhu Rongji plans to continue the pump-priming measures that have driven China's economic growth for the past four years. In addition, political uncertainty linked to leadership-succession struggles is slowing initiative across the board. Speaking after the close of the annual National People's Congress in Beijing on March 15, the premier dismissed fears about the size of China's debt, which has increased sharply in recent years with rising domestic spending. We are able to pay back twice as much as the debts that we owe. Much of the money will go towards infrastructure projects in the west of the country.