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On March 14, Chinese Premier Wen Jiabao answered the questions of the journalists in the press conference after the end of the fifth session of the 11th National People’s Congress.
Wen Jiabao, who has served as the Chinese premier for nine years, spent three hours in answering questions of the Chinese and foreign journalists’ questions, including the ones regarding “Wang Lijun Event”, “reform to political reform”, and “property control”.
Having no eye to the main chance
This was the last time that Wen Jiabao held the press conference as the Premier of the State Council of China since he would retire from this position next year.
Wen Jiabao said: “This year might be the toughest year, but it also could be the year with the biggest hope. People need the composure, determination and honesty of the government and the government needs the trust, support and assistance from the people.”
Looking back at his nine years’ experience as the Premier of China, Wen Jiabao admitted that “there were a lot of de- fects in his work” due to “his limited ability” and “the systematic problems”. As the leader of the highest ranked government department, he felt guilty about the social and economic problems coming out during his tenure and thought that he should be responsible for it.
House price far from reasonable level
When asked about whether the regulation and control in the real estate market could be halted halfway, Wen Jiabao said that he had recently reviewed the property control started in 2003 due to the sense of responsibility.
Wen Jiabao said: “In 2003 the government put forward six measures of regulation and control. In 2005 the State Council formulated the “Eight National Rules”, which were followed by the “Six National Rules” in 2006. But why the regulation and control could not see positive results? The ordinary people are blaming us for the increasing the house price. I feel panic about this.”
According to Wen Jiabao, the property market is related with policies of finance, banking and land and touches the interest relations between central and local governments, as well as the interest of financial companies and property enterprises. “Therefore there are great hurdles for the regulation and control.”
In Wen Jiabao’s opinion, the property control could see the light from the mist in recent two years because the government never wavered in continuing the property control and it hit the core by depressing speculation and investmentoriented house purchasing while taking effective measures.
Then, Wen Jiabao showed his opinions towards the Chinese property market.
Basically, there are 1.3 billion people in China, which is in the period of fast industrialization and urbanization. The residents have rigid and lasting demand for dwelling houses. The government encourages people to rent houses.
Wen Jiabao also held three opinions. One: it is necessary to keep the long-term healthy and stable development of the property market to prevent the bubbles.
Two: the reasonable house price should match the in- come of residents, as well as the cost and reasonable profits. He made it clear that the house prices in some places are far away from the reasonable level. Therefore, the regulation and control should be continued.
Three: the property market development should be based on the market-oriented resource allocation, which needs the full use of the market methods, but the government role should not be ignored because it could keep the stability and promote the balance.
Chongqing administrators should retrospect
On February 6, Wang Lijun, vice mayor of Chongqing, entered the Consulate of Untied States in Chengdu and stayed there for one day. This event was under heavy scrutiny of Chinese and foreign media.
On March 14, Wen Jiabao told the journalists that the central government attached great importance to the “Wang Lijun Event” and ordered relevant departments to launch a thorough and complete survey into that case. “We will depend on the fact and use the legal rules to handle this case efficiently. People will be informed of the results of the survey and handling and will withstand the tests of laws and history.”
When talking about Chongqing, Wen Jiabao said that the previous leaders and people of Chongqing put great efforts into the reform and construction of this city and gained obvious achievements. But he also pointed out that the “current municipal CPC Commission and government of Chongqing should review the event of Wang Lijun and learn lessons from it.”
Wen Jiabao also added: “Since the foundation of the People’s Republic of China, the construction of a modernized China has already seen great achievements under the leadership of the CPC and the government. But we also made detours and mistakes. After the 3rd session of the 11th CPC Representative Meeting, “liberating the thoughts and seeking the truth” were established as the ideological line and the basic route of the CPC, and the important decision of launching the reform and opening up was made. The history tells us that any practice that tallies with people’s interest should draw the historical experiences and lessons and withstands the tests of history and practice. Everyone in China understands this rule and we have confidence in our future.”
Errors of Cultural Revolution are not fully eliminated
When asked about why he mentioned the reform to political system multiple times in the past few years, Wen Jiabao said that he did this out of his sense of responsibility.
“After breaking down the ‘Four-people Gang’, the CPC discussed and settled down several historical problems in the history and decided to launch the reform and opening up. However, the errors of the Cultural Revolution and the feudal influences are not completely erased yet. With the development of economy, new problems, such as unfair distribution, credit shortage and corruption, came out. I know that not only economic reform, but also political reform, especially the reform to the leadership system of the CPC and the government, is needed to address these problems,” Wen Jiabao said. “Now the reform has already got into the period of overcoming difficult problems. Without the success in the reform to the political system, the economic reform could not be done completely and the results of economic reform and construction we’ve gained by now could be lost again and emerging social problems could not be completely solved. The tragedy like the ‘Cultural Revolution’might reappear.” Therefore, “every CPC member and leader should have the feeling of responsibility.”
He thought that China with a 1.3-billion population should build its socialism democratic politic system based on its national condition and the progress should be made step by step. Meanwhile, he believed that “the reform should be continued without any stagnancy and recession, which will lead to disasters.”
In the press conference, Wen Jiabao also answered the questions about the Sino-U.S. relations, the relation between mainland China and Taiwan, election of the head of Hong Kong SAR, rural leadership election, forecast of lower GDP growth rate, boosting equality and justice, China’s attitude towards the problems of Syria, the Wuying Case, reducing the income gap, local government debt and so on.
Wen Jiabao, who has served as the Chinese premier for nine years, spent three hours in answering questions of the Chinese and foreign journalists’ questions, including the ones regarding “Wang Lijun Event”, “reform to political reform”, and “property control”.
Having no eye to the main chance
This was the last time that Wen Jiabao held the press conference as the Premier of the State Council of China since he would retire from this position next year.
Wen Jiabao said: “This year might be the toughest year, but it also could be the year with the biggest hope. People need the composure, determination and honesty of the government and the government needs the trust, support and assistance from the people.”
Looking back at his nine years’ experience as the Premier of China, Wen Jiabao admitted that “there were a lot of de- fects in his work” due to “his limited ability” and “the systematic problems”. As the leader of the highest ranked government department, he felt guilty about the social and economic problems coming out during his tenure and thought that he should be responsible for it.
House price far from reasonable level
When asked about whether the regulation and control in the real estate market could be halted halfway, Wen Jiabao said that he had recently reviewed the property control started in 2003 due to the sense of responsibility.
Wen Jiabao said: “In 2003 the government put forward six measures of regulation and control. In 2005 the State Council formulated the “Eight National Rules”, which were followed by the “Six National Rules” in 2006. But why the regulation and control could not see positive results? The ordinary people are blaming us for the increasing the house price. I feel panic about this.”
According to Wen Jiabao, the property market is related with policies of finance, banking and land and touches the interest relations between central and local governments, as well as the interest of financial companies and property enterprises. “Therefore there are great hurdles for the regulation and control.”
In Wen Jiabao’s opinion, the property control could see the light from the mist in recent two years because the government never wavered in continuing the property control and it hit the core by depressing speculation and investmentoriented house purchasing while taking effective measures.
Then, Wen Jiabao showed his opinions towards the Chinese property market.
Basically, there are 1.3 billion people in China, which is in the period of fast industrialization and urbanization. The residents have rigid and lasting demand for dwelling houses. The government encourages people to rent houses.
Wen Jiabao also held three opinions. One: it is necessary to keep the long-term healthy and stable development of the property market to prevent the bubbles.
Two: the reasonable house price should match the in- come of residents, as well as the cost and reasonable profits. He made it clear that the house prices in some places are far away from the reasonable level. Therefore, the regulation and control should be continued.
Three: the property market development should be based on the market-oriented resource allocation, which needs the full use of the market methods, but the government role should not be ignored because it could keep the stability and promote the balance.
Chongqing administrators should retrospect
On February 6, Wang Lijun, vice mayor of Chongqing, entered the Consulate of Untied States in Chengdu and stayed there for one day. This event was under heavy scrutiny of Chinese and foreign media.
On March 14, Wen Jiabao told the journalists that the central government attached great importance to the “Wang Lijun Event” and ordered relevant departments to launch a thorough and complete survey into that case. “We will depend on the fact and use the legal rules to handle this case efficiently. People will be informed of the results of the survey and handling and will withstand the tests of laws and history.”
When talking about Chongqing, Wen Jiabao said that the previous leaders and people of Chongqing put great efforts into the reform and construction of this city and gained obvious achievements. But he also pointed out that the “current municipal CPC Commission and government of Chongqing should review the event of Wang Lijun and learn lessons from it.”
Wen Jiabao also added: “Since the foundation of the People’s Republic of China, the construction of a modernized China has already seen great achievements under the leadership of the CPC and the government. But we also made detours and mistakes. After the 3rd session of the 11th CPC Representative Meeting, “liberating the thoughts and seeking the truth” were established as the ideological line and the basic route of the CPC, and the important decision of launching the reform and opening up was made. The history tells us that any practice that tallies with people’s interest should draw the historical experiences and lessons and withstands the tests of history and practice. Everyone in China understands this rule and we have confidence in our future.”
Errors of Cultural Revolution are not fully eliminated
When asked about why he mentioned the reform to political system multiple times in the past few years, Wen Jiabao said that he did this out of his sense of responsibility.
“After breaking down the ‘Four-people Gang’, the CPC discussed and settled down several historical problems in the history and decided to launch the reform and opening up. However, the errors of the Cultural Revolution and the feudal influences are not completely erased yet. With the development of economy, new problems, such as unfair distribution, credit shortage and corruption, came out. I know that not only economic reform, but also political reform, especially the reform to the leadership system of the CPC and the government, is needed to address these problems,” Wen Jiabao said. “Now the reform has already got into the period of overcoming difficult problems. Without the success in the reform to the political system, the economic reform could not be done completely and the results of economic reform and construction we’ve gained by now could be lost again and emerging social problems could not be completely solved. The tragedy like the ‘Cultural Revolution’might reappear.” Therefore, “every CPC member and leader should have the feeling of responsibility.”
He thought that China with a 1.3-billion population should build its socialism democratic politic system based on its national condition and the progress should be made step by step. Meanwhile, he believed that “the reform should be continued without any stagnancy and recession, which will lead to disasters.”
In the press conference, Wen Jiabao also answered the questions about the Sino-U.S. relations, the relation between mainland China and Taiwan, election of the head of Hong Kong SAR, rural leadership election, forecast of lower GDP growth rate, boosting equality and justice, China’s attitude towards the problems of Syria, the Wuying Case, reducing the income gap, local government debt and so on.