He said domestic demand is boosted in a comprehensive way, industrial output has gradually stabilized, and agricultural production is on the whole stable. Economic restructuring has made encouraging progress, and urban employment has risen as 2.68 million jobs were created in the urban areas in the first quarter.

He said the stimulus policies were primarily aimed at boosting domestic demand, and at the same time made full use of external demand, to make both of them drive economic growth.

"This will lead to the transformation towards a more balanced growth pattern of the Chinese economy," Wen said.

He said the stimulus policy would give a big push to the shift from extensive economic growth driven by high consumption of material resources to intensive growth driven by scientific and technological advancement, improved quality of the workforce and institutional innovation.

"China" is a big word, said James E. Glassman, managing director and senior economist with J. P. Morgan Chase.& Co. "It symbolizes an important story in the economic universe. It underscores how much is at stake not only for the United States and China, but the global economy, and how important it is to address the global financial crisis," he said.

"We should not, however, lose sight of the fact that the international financial crisis is still spreading, the basic trend of world economic recession is not reversed, problems in the financial system remain unsolved and the worsening of the real economy has been more serious than expected," the premier warned.

The global economic recovery may be a long and tortuous process, he said.

However, the premier said hope will light the way for people around the world, and will never cease.

REGIONAL COOPERATION URGED

In the face of the spreading financial crisis, Wen vowed, China will continue to work with other Asian countries to actively tackle challenges and advance all-round cooperation with a view of enriching and energizing cooperation and promoting peace and prosperity in the region.

"Asia is one of the most dynamic and promising regions in the world economy. Together, we take up 60% of the world's population, a quarter of the global economy and a third of global trade," Wen said.

When times get rough and emerging economies strive to maintain growth, the Asian ethic of "Prosper Thy Neighbor" is an imperative, said Fidel V. Ramos, BFA chairman of the board of directors and former president of the Philippines.

Asian emerging economies have been galloping in the past decades. In East Asia, China achieved spectacular growth in 30 years. In South Asia, India's software and automobile industries broke into to the world market. Asia is dubbed as the engine to drive forward the world economy.

The financial stress starting from developed countries has nonetheless challenged Asian countries. Sluggish exports, shrinking investment and demand, fewer jobs and lower income have plagued many emerging economies.