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|  | | China warns of slow recovery |
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¡¡¡¡Sounding a note of caution about prospects for a rapid economic recovery, Vice President Li Keqiang said on Jun 16th that China will maintain its relatively loose monetary policy and proactive fiscal policy.
¡¡¡¡"China's economic recovery does not have a solid foundation, and we should not underestimate the difficulties," Li said. His comments echoed cautious comments made over the weekend by Premier Wen Jiabao, who said China might increase the size of its USD585 billion stimulus package if conditions warrant.
¡¡¡¡On Monday, prominent economist Li Yang said that China's economy will not experience a rapid recovery because it will take time for China to find a new engine of growth to replace China's sagging export sector. "China should not count on a turnaround of external demand to bring about its recovery," said Li, director of the finance institute at the Chinese Academy of Social Sciences, according to Chinese press reports. China's exports fell 26.4% in May from a year earlier, following a 22.6% drop in April, year-on-year.
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