This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/world/asia-pacific/7757105.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Economy warning from China leader Economy warning from China leader
(about 7 hours later)
China's President Hu Jintao has warned of the effects of the global financial crisis on his country. China's President Hu Jintao has warned that the global financial crisis could weaken his country's competitiveness.
Mr Hu gave his warning at a meeting of the Politburo and his words have been made public by the state media.Mr Hu gave his warning at a meeting of the Politburo and his words have been made public by the state media.
As growth slows, Mr Hu said that in the coming period China would starkly confront the effects of the international financial crisis.As growth slows, Mr Hu said that in the coming period China would starkly confront the effects of the international financial crisis.
And he warned that the economic situation was a test of the Communist Party's ability to govern.And he warned that the economic situation was a test of the Communist Party's ability to govern.
"External demand has obviously weakened and China's traditional competitive advantage is being gradually weakened," Mr Hu said, according to the official People's Daily newspaper.
"Whether the pressures can be turned into a driving force and the challenges turned to opportunities ... is a test of our ability to control a complex situation, and also a test of our party's governing ability," he added.
Action
Recent figures show that the government has cause to be worried.Recent figures show that the government has cause to be worried.
Growth has slowed to 9% - and predictions say that it may drop to 7% or 8% next year.Growth has slowed to 9% - and predictions say that it may drop to 7% or 8% next year.
These are dazzling figures for some economies, but there's a widespread belief - even a superstition - in China that growth needs to stay above 7% in order for social stability to be maintained.These are dazzling figures for some economies, but there's a widespread belief - even a superstition - in China that growth needs to stay above 7% in order for social stability to be maintained.
China has already taken action.China has already taken action.
This past week the central bank carried out the biggest cut in interest rates in more than a decade.This past week the central bank carried out the biggest cut in interest rates in more than a decade.
And earlier this month, the government announced a stimulus package of $586bn (£380bn).And earlier this month, the government announced a stimulus package of $586bn (£380bn).
This is enough, the Communist Party will hope, to get this country through the next year or two.This is enough, the Communist Party will hope, to get this country through the next year or two.