Hello and welcome to this edition of Reports from Developing Countries on China Radio International. I'm Zheng Chenguang in Beijing.

2008 was a year that witnessed a global financial crisis and worldwide economic turbulence. It was also a hard year for China, as the country was confronted with a tough international environment and devastating natural disasters. However, the Chinese government has promptly adjusted its macroeconomic control policies to keep up with the new situations, and successfully held the Beijing Olympic Games against the tough economic backdrop.

Today, we will have a review of Chinese efforts in 2008.

Please stay tuned.

Report

At the beginning of 2008, China maintained a relatively fast economic growth, with a 10-percent GDP increase and 8-percent CPI increase in the first quarter.

Later in the year, however, China began to feel the impact of the global financial crisis after the world's major economic poles reduced imports.

Confronted with the new situation, the Chinese government adjusted its macro economic policy for the second half of 2008. It adopted a moderately active fiscal policy and monetary policy.

Zuo Xiaolei, Chief Economist at China Galaxy Securities Company, says China has demonstrated a strong ability in macro economic control by swiftly adapting to the situation.

"We have experienced new changes in the economic development in the past half year. There are new elements of uncertainty after we went through natural disasters like the snow storm in early 2008, and the May 12th Sichuan earthquake. Meanwhile, the subprime mortgage crisis in the United States has also cast negative influences on China's exports. Therefore, it is quite necessary for the Chinese government to readjust its economic strategy and maintain stable growth."

Chinese enterprises are also taking effective measures to save themselves.

Qiu Liangsheng, manager of a Guangdong-based toy company, says self-innovation is the key to sustainable development.
"Our company invests about 10 million yuan, or about 1.4 million U.S. dollars, every year to develop our own products. We know it is the only way for us to make better products and ensure our market share."

Along with the global financial crisis, the natural disasters caused serious casualties and great economic losses of hundreds of billions of US dollars.

However, China's efforts in quake relief and post-quake reconstruction add to the confidence of many overseas enterprises in China.

Lin Qingwen is Executive Vice President of Ericsson China.

"To other investors, I think in Chengdu, nothing really has changed. The economy is sound, the people are competent, committed. Yes, there was a disaster in Sichuan, but I think there is a tremendous reconstruction opportunity coming out."

Chinese leaders have said the country's best contribution to global economic stability is to maintain stable and fast economic development within the country itself.

During the seventh Asia-Europe Meeting in Beijing this October, Chinese President Hu Jintao introduced China's strategy to maintain stable economic growth.

"The Chinese economy has been increasingly connected with the world economy. We will make adjustments to our macro economic policies to keep up with the latest international and domestic situations. We also encourage domestic consumption to maintain stable financial and capital markets, and ensure economic and social progress."

To achieve the goal, China will spend 4 trillion yuan, or 600 billion U.S. dollars, by 2010 to promote infrastructure construction, public transportation, ecological environment, as well as support post-quake reconstruction, raise income levels, encourage domestic consumption, and ensure employment.

During the 2008 Asia-Europe Meeting in Beijing, Slovenian President Danilo Türk said China is one of the major forces to slow the crisis.

"China is a major player in the global economies. So I think the first thing that has to be ensured is that China continues to grow, in whatever is good for stability for China as for the world."

For China, 2008 was a year of opportunities. Success of the 29th Olympic Games has brought the country unprecedented prospects.

2008 has seen China increase economic momentum after the Games, and grow in strength after successfully handling its natural disasters.

That's it for this edition of Reports from Development Countries brought to you by China Radio International. This is Zheng Chenguang in Beijing, thanks for listening.