Chinese, US Presidents Discuss Economy

Chinese President Hu Jintao spoke on the phone with U.S. President George W. Bush this week about how to cope with the current global financial crisis.

China Daily reported that such ideas include planning financial summits and strengthening international cooperation to help stabilize markets. Hu also told Bush that he hopes U.S. solutions to the crisis, such as the $700 billion bailout enacted by Congress this month, take effect as soon as possible to restore investor confidence.

China has so far taken some measures to stem it's own domestic slowdown. Third-quarter growth in China was only 9 percent, representing the slowest growth rate the country has seen since the SARS outbreak in 2003.

Faced with weak exports and slowdowns in industrial production, construction and the real estate market, China is now writing tax and spending policies aimed at stimulating the economy, the New York Times reported.

China's State Council, the chief administrative authority in China, met last weekend and announced that it would adopt "a flexible and prudent macro-control policy to keep a stable and rapid economic development."

The Council also said that other financial, credit and foreign trade measures will also be implemented in the near future.

According to the New York Times, the State Council's announcement represents a shift in its economic policy, which previously was: “to ensure growth and control inflation.”

Even with one the world's fastest growth rates, it seems China is also anticipating some tough times ahead.