China 'faces most difficult year'

Chinese Premier Wen Jiabao has said the current year will be the most difficult the country has faced this century because of the global economic crisis. Addressing parliament, Mr Wen reiterated that there would be a $585bn (£413bn) investment programme to stimulate the Chinese economy. He also declared an annual growth target of 8% and goals to boost consumption and raise consumer demand. His address opens the annual session of the National People's Congress. The premier said he hoped to create nine million new jobs in the cities and increase local government spending budgets by almost 25%."In China, a developing country with a population of 1.3 billion, maintaining a certain growth rate for the economy is essential for expanding employment for urban and rural residents, increasing people's incomes and ensuring social stability," he said. Mr Wen was frank that China was suffering from the global financial crisis, and acknowledged the country lacked adequate social security provisions and health care. Beijing says that as more people lose their jobs in China, the lack of a social safety net is becoming a glaring problem.