The Second Session of the 11th National People's Congress held a press conference at the Great Hall of the People on March 13. Premier Wen Jiabao answered questions from the Chinese and foreign press. Below are highlights of his answers on domestic policies.

Confidence in 8-percent GDP growth

People are all concerned about whether China wPremier Wen on Domestic Policiesill be able to attain the goal of 8-percent GDP growth for this year. I admit that it will be a difficult job. I also believe that with considerable efforts it is possible for us to attain the goal. I think we need to approach the goal of 8-percent growth from the following three perspectives. First, to take into account the necessity and possibility of this goal; second, this goal is the indication of the government's commitment and responsibility; and third, this goal also shows the confidence and promises that we have for the future.

I can give you an example. I don't think that by setting a goal we can determine everything. But setting a goal is like installing a compass on a sailing vessel. If there's no compass on a sailing vessel, we will not be able to know where the vessel is heading and when the vessel will arrive at its destination. There is a saying that goes: "If this vessel has no compass, all it has will be head wind rather than a tailwind."

As far as the possibility and importance of the 8-percent goal is concerned, I think I have made it clear in my report. Here I would like to stress the following points. First, China is now in a stage of accelerating industrialization and urbanization and a state of further increasing consumption and upgrading its consumption structure. Among the 1.3 billion people we have in the country, about 900 million are farmers. If you go to the countryside and take a look yourself, you will see the fact that no matter how much investment you may make in the countryside, it will not be enough. China's market potentials are far larger than those of European countries or the United States given its population and size.

Second, China has abundant labor resources, and we have our own competitive edge in terms of talent. Although now we face some difficult problems in employment, in a longer-term perspective, these are going to be the advantageous conditions we have in development.

Third, thanks to our reform over the past 10 years, China's banking sector is generally sound and stable. The banking sector has offered very strong support to the economic growth of China. I can give you a comparison. Now the United States and European countries are fighting the international financial crisis on two fronts. One front is the international financial crisis itself, and the other is in the real economic sectors. In China, of course, we need to fend off risks in the financial sector. However, we have not used fiscal resources to fix the loopholes in the banking sector. On the contrary, the banking sector has offered a large amount of credit to boost economic growth. The figures are very clear to you, I believe. The newly increased loans stood at 470 billion yuan ($68.81 billion) last November, 770 billion yuan ($112.74 billion) in December, 1.62 trillion yuan ($170.13 billion) in January and 1.07 trillion yuan ($156.66 billion) in February.

What is most important about our efforts to tackle the international financial crisis is that over the past few months, thanks to the efforts we have made, we have already seen that the hearts of the Chinese people have begun to feel warmed. We believe the warm hearts of the people will also pass on warmth to the economy. We know full well that no country in today's world can remain immune from the negative impact of the international financial crisis, and we cannot overcome the difficulties of the crisis outside the context of international economic difficulties. We know full well that we'd better fetch a flint than beg for a light, and we'd better dig a well for ourselves than beg for water from others. I hope all the Chinese people will be able to pass on warmth in their hearts to the Chinese economy.

Stimulus measures

This year, the two sessions were held at a very crucial time of international financial crisis. The National People's Congress has approved the report on the work of the government and endorsed the government's package plan to tackle the international financial crisis. To attain our goal and this plan, I think, first and foremost, we need to have very strong confidence. Only when we have strong confidence can we have courage and strength, and only when we have courage and strength can we overcome the difficulties.

Thanks to our efforts over half a year, we have formulated a package plan that has four components, namely, massive government investment, wide-ranging industrial readjustment and rejuvenation plans, intensive scientific and technological support and the substantial improvement of social security. These four aspects of the plan are inter-related with one another. They form an integral whole and cannot be separated from one another. This also shows the plan reflects both short-term and long-term needs and treats a disease by looking into both its root cause and symptoms.