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China economy to grow 10 pct in Q4 -gov't researcher

Published 11/22/2009, 08:23 PM
Updated 11/22/2009, 08:27 PM

BEIJING, Nov 23 (Reuters) - China's annual economic growth will reach 10 percent this quarter and grow even faster in the first quarter of 2010, a government researcher said in remarks published on Monday.

Yu Bin, with the State Council Development Research Centre, said the government should aim to contain annual consumer inflation at 3 percent in 2010.

China's gross domestic product grew 8.9 percent in the third quarter and its consumer price index hit -0.5 percent in October.

The China Securities Journal also quoted Yu as predicting no significant change in Chinese monetary policy next year because a loose monetary stance would be needed to complete investment in railways, roads and airports that broke ground earlier this year.

On the issue of China's currency, Yu said, "China is facing a dilemma."

Overly fast appreciation of the yuan would further hurt China's export sector, while a small and gradual rise would feed speculation and hot money inflows, which could destabilise the financial market, he said. China is under mounting pressure to let its currency rise against the dollar. The yuan has been effectively repegged against the weakening U.S. dollar since mid-2008.

Expressing frustration that the Obama administration has not been able to persuade Beijing to let the yuan appreciate, two U.S. senators asked the Commerce Department on Thursday to investigate alleged Chinese currency "manipulation." [ID:nN19471538] (Reporting by Langi Chiang; Editing by Ken Wills) ((yan.jiang@thomsonreuters.com; +8610 6627 1207; Reuters Messaging: yan.jiang.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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