China Takes Measures to Boost Economy

China says it is taking more steps aimed at blunting the impact of the global financial crisis.

In a statement posted on its Web site Saturday, China's State Council says it plans to increase the country's money supply by 17 percent in 2009, in an effort to spur domestic consumption. The government also hopes to boost bank lending by more than $14 billion over 2008.

Last month, China's government unveiled an economic stimulus package including more than $580 billion in spending over the next two years.

Earlier Saturday, the leaders of China, Japan and South Korea announced they will work together to boost their manufacturing sectors and help each other avoid mistakes that have hurt the economies of other countries, such as setting up new trade barriers.

The East Asian leaders made their bold pledge, aimed at helping revive the ailing global economy, during an unprecedented summit in southwestern Japan.

Japanese Prime Minister Taro Aso, Chinese Premier Wen Jiabao and South Korean President Lee Myung-Bak also said they will set up an $80 billion fund to help stabilize the region's economies, and give more money to the Asian Development Bank.

China, Japan and South Korea make up 75 percent of the East Asian economy, and account for almost 17 percent of the world's economic output.

The three countries say they now plan to hold three-way summits on an annual basis.

Some information for this report was provided by AFP and Reuters.