Wen defends China's economic incentive package

TIANJIN - Chinese Premier Wen Jiabao on Tuesday dismissed accusations on the alleged side effects of China's 4-trillion yuan ($631 billion) stimulus package unveiled in 2008 in response to the global financial crisis.

Speaking at the opening ceremony of the Annual Meeting of the New Champions, also known as the 2012 Summer Davos, Wen responded to suggestions that China had paid an "undue price" during the execution of the package.

"I want to make it clear here that it was exactly due to our resolute decision and scientific response that China was able to avoid factory closures, job losses and the return of migrant workers to their home villages", Wen said.

The premier told the forum that, after the international financial crisis broke out, China fully implemented its plan to boost economic growth, improve people's livelihoods, overcome current difficulties and pursue long-term development.

Thanks to these efforts, China swiftly achieved an economic upturn and promoted the economic recovery of the world economy, according to Wen.

"These stimulus measures helped us keep the good momentum of economic development, maintain social stability and harmony and protect China's modernization process from major setbacks," he added.

The three-day forum, the sixth of its kind since 2007, is themed "Creating Future Economy" and has attracted some 2,000 participants from 86 nations and regions this year.