NEWS

5/31/2010, By Zhang Jin (chinadaily.com.cn) Tokyo - Premier Wen Jiabao warned Monday it is too early for China to adopt an exit strategy as the world's economy could slip into a recession again.

The visiting premier told a group of Japanese business people in Tokyo that China won't pull back from economic stimulus measures due to the uncertainties of the global economy.

Although the world economy has recovered from the worst financial crisis in seven decades, "the recovery is very slow," he said.

The Greek debt fallout is likely to delay the recovery of Europe and add uncertainty to the European market, one of China's major export destinations, Wen said.

Listing major challenges facing the Chinese economy, the premier said China has to remain a relatively fast and stable economic growth, optimize economic structure and tame inflation.

"It is an arduous job," he said.

China's consumer price index (CPI), a major gauge of inflation, hiked 2.4 percent year on year in March and in April accelerated to 2.8 percent, according to statistics from the National Bureau of Statistics. A persistent drought in southwest China as well as market speculation is believed to have spurred the recent prices hike in rice, garlic, vegetables and green beans.

The summer yield of crops, despite the recent drought in Southwest China and floods in South China, will be close to the level of the same time last year. Wen didn't reveal last year's figures.

He also vowed to keep the housing prices "at a certain range".