Wen hopeful on global economy despite China inflation

Chinese Premier Wen Jiabao said on Monday the country must find a balance between generating jobs and taming inflation, saying the government should be judged on its ability to deliver on both counts. "Our task is to strike the right balance between these two and ensure a bright future for the Chinese economy," Wen told a group of foreign company executives at a meeting in Beijing.
"Whether we will succeed on that front will pass judgement on my work and the work of the government," he said. Wen strummed familiar chords on the government's commitment to rein in inflation, which leaders fear could stir discontent and erode the standing of the ruling Communist Party.
Chinese inflation topped expectations at 4.9 percent in the year to February, near its fastest level in more than two years, and looks set to climb in coming months. To keep a handle on inflation the government has raised interest rates three times and banks' reserve requirements six times since October.
Its latest hike to required reserves on Friday lifted the mandatory ratio for the country's biggest banks to a record 20 percent. China has set an official goal of 7 percent economic growth per year for 2011-2015, lower than the 7.5 percent it set for the previous five years. But those official goals in the past have been consistently outpaced by double-digit growth.
Answering questions from the foreign executives, Wen was optimistic about the outlook for the global economy. "It won't be long for the US to get back on the track of a strong recovery," he said, adding that "urgent steps" should be taken to reduce trade imbalances between the two countries and that the US should do more to foster Chinese investment there.
"We hope the US will further ease its restrictions on market access," Wen said, citing three Chinese companies creating jobs in the United States - Wanxiang, Haier and Cosco. He also said he was "surprised and shocked" when he saw oil prices exceeding $100 a barrel this year, according to a media pool report about his meeting.