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UPDATE 1-China's Hu warns on trade, investment protectionism

Published 11/13/2009, 02:12 AM
Updated 11/13/2009, 02:15 AM

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SINGAPORE, Nov 13 (Reuters) - Chinese President Hu Jintao called on Friday for free trade and investment liberalisation, warning that problems, including protectionism, remained within the global system.

Hu told business and political leaders at an Asia Pacific meeting in Singapore that the global economic recovery was not yet firmly established. He added that the focus of Beijing's 4 trillion yuan ($586 billion) stimulus package was on expanding China's domestic demand and creating a new pattern of economic growth.

"We must continue to promote trade and investment liberalisation and facilitation and oppose protectionism in all its manifestations, particularly the unreasonable trade and investment restrictions imposed on developing countries," Hu said in a speech, without elaborating.

"The inherent problems of the international economic system have not been fully addressed and a comprehensive world economic recovery still faces many uncertainties and destabilising factors."

China's economy has picked up over the course of the year, fuelled by government stimulus spending, with the annual GDP growth rate accelerating to 8.9 percent in the third quarter from 7.9 percent in the second and 6.1 percent in the first, virtually assuring China of reaching its 8 percent full-year growth target.

The World Bank last week raised its GDP growth forecast for China this year to 8.4 percent from a prior forecast of 7.2 percent, and projected 8.7 percent growth for next year. ($1=6.826 Yuan) (Reporting by Kevin Yao and Lucy Hornby; Writing by Dean Yates and Neil Chatterjee, Editing by Bill Tarrant)

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