Chinese economy 'better'

Premier Wen Jiabao 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 of last year.

“The policy measures we have taken have achieved initial results,” Mr Wen said, according to China National Radio’s website. “Economic conditions in December were better than expected.”

Beijing announced a €435bn 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.