Chinese recovery is not stable, says finance minister

China is not yet seeing a stable economic recovery and will have to
keep a fiscal stimulus in place for now, Chinese Finance Minister
Xie Xuren said on Tuesday. "We are seeing more positive signs and an
upward trend in the Chinese economy. However, we are also soberly
aware that the economic rebound is yet to be stable, firm, and
balanced," Xuren said in a statement. "China will continue with the
proactive fiscal policy and moderately eased monetary policy, further
implement and improve the policy package, and ensure the achievement
of our social and economic development goals," he added. The
statement was presented at the annual meetings of the International
Monetary Fund and World Bank in Istanbul. The IMF last week lifted
its growth forecast for China's economy this year to 8.5 percent,
saying it was helping to drive Asia's recovery from the global
economic crisis. But the IMF also warned that rapid credit growth in
China risked creating asset bubbles and bad loans which could derail
the Chinese revival.