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China's Wen warns of rocky economic times

China's Wen warns of rocky economic times
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Chinese Prime Minister Wen Jiabao has warned that global economic growth remained vulnerable to sovereign debt risks.

During a state visit to Japan he said action must also be taken to avoid yet another economic downturn.

Wen told an audience of Japanese business executives that it was too early for governments to think about ending the stimulus spending that has shored up growth since the start of the global financial crisis in 2008.

“To maintain our rapid growth, it is necessary to implement certain economic stimulus measures. Some countries have experienced sovereign debt crises, for example Greece. Can we say that this phenomenon is over? Now it seems that it is not so simple and we must take a full measure of the difficulties,” he said.

Wen added his own country’s growth remains on track and stressed that the vast amount of trade between China and Japan – worth nearly 200 billion euros last year – ensures closer ties.

Relations between the two countries have been strained, partly over China’s exploration for natural gas in the East China Sea; there are now to be formal negotiations on that issue.

In a charm offensive seemingly aimed at showing a softer side of China, Wen went for an early morning jog through a Tokyo park and joined locals in Tai Chi exercises and even a game of baseball.