Reforming currency controls and taking action over China's growing trade surplus and foreign exchange reserves were highlighted by Premier Wen Jiabao as key government objectives Wednesday, AP reported. Speaking at the opening of the African Development Bank's annual meeting in Shanghai, Wen promised that Beijing would use all options available to ensure economic stability. This suggests that further tightening measures may be on the way amid fears that China's rapid growth could lead to a debt crisis or higher inflation. "There are some problems. We face excessive liquidity, an imbalance in the balance of payments, and rapid accumulation of foreign exchange. But we are taking measures to deal with these issues," Wen said. China's industrial output in April rose 17.4% from a year earlier, down slightly on the 17.6% increase in March, the Wall Street Journal reported. Economists said this continued growth – which indicates strong export demand that may see more corporate profits sunk into industrial investment, potentially leading to excess capacity – could act as a spur for further tightening. More investment data is due out Thursday.
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