Wen Jiabao, China's premier, can be disarmingly honest about problems facing the Chinese economy. In recent years, he has referred to remarkable headline growth – overly dependent on investment and exports and skewed towards the big cities of the eastern seaboard – as “unstable, unbalanced, unco-ordinated and unsustainable.” Last week, in his annual “work report” to the National People's Congress, he warned that the performance in 2009, when China registered 8.7 per cent growth, did not mark a fundamental improvement. There was still “insufficient internal impetus driving economic growth,” he said, alluding to the reliance on state-led stimulus. Earlier, he had acknowledged concerns about asset bubbles, likening property markets in some big cities to a “wild horse”.
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