US crisis will have impact in China: Wen

New York, Sept 29 (PTI) Expressing concern over the
financial crisis in the United States, Chinese Premier Wen
Jiabo has said that the recession in the U.S. market will
definitely have an impact on the communist country.

"Ten years ago, China-U.S. trade stood at only USD
102.6 billion. Today, the figure has soared to USD 302
billion, a 1.5 fold increase.

"...a shrinking U.S. demand would certainly have an
impact on China's exports. And U.S. finance is closely
connected with Chinese finance. If anything goes wrong with
U.S. financial sector, we would be anxious about security of
Chinese capital," Wen told NewsWeek.

He also expressed concern about the possibility of a
U.S. economic recession and noted how closely the U.S. markets
were connected with China's financial system.

"We have seen a decline in external demand and China's
domestic demand cannot be significantly increased in a short
period of time.

"We must read just macroeconomic policy. A recession
in the United States would certainly have an impact on China's
economy," Wen said. PTI DS