Li Admits ‘Mistakes’ Led to China’s Inflation Crisis
Premier Li Peng pledged Sunday to intensify China’s battles against inflation and corruption, issues of “life or death” for the Communist Party.
In his annual address to the National People’s Congress, Li said “mistakes of governments at all levels” fueled the fastest inflation in 45 years, and he promised better food supplies and a slowdown in the lifting of price controls in the coming year.
Li said retail price inflation of 21.7%, far exceeding his goal of 10%, has aroused great public resentment. Diplomats said Li’s rare admission of error reflected the depth of that resentment. The Communist Party for decades boasted that, unlike the West, China had little or no inflation.
Li also urged lawmakers to rekindle China’s perennial war on corrupt officials.
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