St.Petersburg - Xinhua
Chinese Premier Wen Jiabao has said the most important thing for China was to \"put our own house in order\" in the face of the current grave international economic situation. China had the confidence, resolve and capability to handle its affairs well, Wen said here on Sunday while addressing a group of representatives of overseas Chinese working and studying in Russia as well as some Chinese Russians. The premier outlined the economic situation in China, saying the goal of employment for this year had been achieved, and the eighth consecutive year of agricultural growth had laid a firm foundation for the national economy and people\'s livelihood. He said the general level of consumer prices had shown an obvious decrease since October, but challenges remained ahead in the winter, when demand normally was high and production, such as vegetable production in northern China, was fairly low. Wen said increasing production was the main means of controlling prices. He also highlighted the need to improve the flow of agricultural products to streamline the connection between production in the countryside and consumption in the cities. On housing prices, Wen said the two-year regulation of the real estate industry and increased construction of welfare housing were set to ease the tension between supply and demand, which would bring down house prices. Wen said the regulation of the real estate industry would not waver. \"We aim to lead housing price back to a reasonable level and promote a healthy development of the real estate industry at the same time,\" he said. On the allocation of this year\'s increased fiscal income, Wen stressed the need to reduce structural tax to support weak points in the economy so as to help the development of small- and micro-sized enterprises and ensure employment. It was also necessary to regulate income allocation with multiple measures to improve people\'s living standards. The premier said China\'s fiscal deficit and debt balance were of reasonable and controllable proportions of the GDP, and the government would continue to ensure fiscal and financial security. In face of the unprecedented long and complex financial crisis, China\'s proper handling of its own affairs would be the biggest contribution to the world, Wen said. He promised China would carry out its responsibilities in accordance with international rules, and solve problems one by one in a steadfast way to ensure a bright future for the Chinese economy.