Premier Wen Jiabao told attendees at the World Economic Forum in Dalian that Beijing will maintain unprecedented government spending rates to sustain the country’s economic recovery, Bloomberg reported. "China’s economic rebound is unstable, unbalanced and not yet solid," Wen said. "We cannot and will not change the direction of our policies when the conditions aren’t appropriate." Wen said that the US$586 billion stimulus package has produced positive initial results, stopping a downturn in economic growth. He added that some stimulus measures will "fade" and others will take time to come into effect. Wang Qing, chief Asia economist for Morgan Stanley in Hong Kong, said that the question confronting Chinese policy-makers is how to migrate from policy-based growth to a more market-driven model. "Very weak external demand is the key concern," he said.
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