U.S. “Bailout” Results Uncertain; But China Says Its Stimulus is Working Already

Few economists in the United States claim to see improvement in the economic situation even after billions of new spending in the “bailout.”  And President-elect Obama had vowed to spend almost $1 Trillion more. says China’s efforts to break out of an economic slump amid global turmoil are starting to show results, with the economy performing better than expected in December, state radio reported.

But in China, the economic stimulus is already working, the state media reports…

(This could be an example of why China likes to control the media….)

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By JOE McDONALD, AP Business Writer

Premier Wen Jiabao

“The policy measures we have taken have achieved initial results,” Wen said, China National Radio reported on its Web site. “Economic conditions in December were better than expected.”

Revenues at some companies are rising, backlogs of unsold goods are falling and power consumption is growing, Wen was cited as saying during a three-day visit to factories in the eastern province of Jiangsu. The report gave no figures.

Wen’s comments appeared to be part of efforts to restore flagging corporate and public confidence — a key element in Beijing’s plans, which rely on spurring private investment and consumer spending — and could be a positive sign for hopes China will help to drive a global recovery.

Beijing announced a 4 trillion yuan ($586 billion) stimulus package in November aimed at reducing reliance on exports by revving up domestic consumption. Effects of the spending are not expected to be seen for several months, but some industries such as steel are stepping up activity in anticipation of revived demand.

“The early results are not big, but they are strengthening our confidence that we can triumph over adversity,” Wen was quoted as saying.

Read the rest:
http://news.yahoo.com/s/ap/20090112/a
p_on_bi_ge/as_china_economy_2