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China has multiple plans for worse crisis impact

BEIJING -- China has multiple plans to prepare itself  for further negative impact of the global financial crisis, said Zhou Xiaochuan, governor of China's central bank, Friday.

China's long-held policy of keeping the Renminbi exchange rate "basically stable at an appropriate and balanced level" is "relatively comprehensive and enough", Zhou told a press conference on the sidelines of the parliament annual session.

Answering a question on whether China can rule out the possibility of depreciating the yuan to support economic growth, he said, "The question should be raised to some countries where the financial crisis originated from: what's going to happen eventually on your side?"

"We have to make multiple plans and analyze various scenarios since there is obviously great uncertainty on their side," he said, adding that the government won't disclose its intention until the picture gets clear.

In reply to a question whether China will make more investment in addition to its 4-trillion-yuan (585 billion US dollars) stimulus package, Zhang Ping, the country's chief economic planner, said whether the government will increase investment depends on how the situation develops in the face of the financial crisis.

"There are already signs of recovery, including rebound of consumption, investment and some product prices," said Zhang, head of the National Development and Reform Commission.

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