BEIJING — China's top economic official cautioned that the country faces possible new problems and said Beijing will continue its stimulus policies because a recovery still lacks a solid foundation, according to comments reported Monday.
Premier Wen Jiabao warned against being "blindly optimistic" despite improvements in economic growth, according to a report on the Cabinet's Web site.
"Economic operation still faces many new difficulties and problems," Wen was quoted as saying during a visit to southeastern China that ended Monday.
Wen cautioned that the effects of some government measures might fade while others would take time to show results, the statement said. It gave no other details of potential problems.
Wen said Beijing will stick to policies meant to boost domestic demand, maintain easy credit and promote efficiency, the statement said. The government is in the midst of a two-year, 4 trillion yuan ($586 billion) stimulus that is meant to insulate China from the global downturn by boosting domestic consumption.
Wen's comments echoed his repeated recent warnings against complacency and assurances that Beijing's stimulus spending and easy credit would continue. But they clashed with increasing optimism among financial analysts who say China is emerging from its economic slump.
China's economic growth accelerated in the latest quarter amid Beijing's huge stimulus spending but authorities have called for continued vigilance. They say weak corporate profits and other areas show a recovery is not fully established.
"The foundation of the economic recovery is not stable, not firm and not balanced, and we certainly cannot be blindly optimistic," Wen said during his visit to Zhejiang province south of Shanghai, according to the statement.
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