...of the paper dragon once again "surprises" us.
In an export-driven economy that benefits from currency depreciation, this was certainly not motivated by a desire to help the rest of the world.
Another round of competitive devaluations. This will be fun.
By Joe Mcdonald, AP Business Writer
China's premier says stimulus package `biggest contribution' to world; Asian stocks rise
BEIJING (AP) -- China's massive stimulus package will help contribute to global stability by boosting investment in the world's fourth-largest economy and consumer spending, the nation's top economic official said Monday.
Faced with the prospect of zero export growth, closing factories and mass layoffs, China joined moves by governments around the world to cushion the blow of the global slowdown with the announcement of the $586 billion package.
Stock markets in Japan, Hong Kong and mainland China soared in response.
The plan calls for higher spending on roads, airports and other infrastructure, tax deductions for exporters and more aid to the poor and farmers. Spending on health and education will increase, as well as on environmental protection and high technology.
"We must implement the measures to ensure a fast and stable economic development," Premier Wen Jiabao said at a meeting of government leaders, according to a report read out on the state television. "They are not only the needs of the development of ourselves, but also our biggest contribution to the world."
The announcement comes before Preisdent Hu Jintao attends a meeting this week in Washington of world leaders to discuss a response to the global crisis.
Exporters say orders have fallen sharply, leading to an increase in factory closures and layoffs. Chinese economic growth fell to 9 percent in the latest quarter, its lowest level in five years, and analysts expect export growth to fall as low as zero in coming months as global demand weakens.