PREMIER Wen Jiabao said this morning that major developed economies should adopt responsible and effective fiscal and monetary policies, properly handle debt issues, ensure the safety and stable operation of investment in the market, and maintain confidence of investors around the world.

China will keep monetary policy tight to keep a lid on inflation, Wen said in a keynote speech at the opening of the World Economic Forum annual meeting of "New Champions 2001," a three-day event held in the city of Dalian in northeast China's Liaoning Province.

"We will keep overall price levels basically stable and prevent big swings in economic growth," he added.

Meanwhile, China will forge ahead with structural reforms and boost domestic consumption to sustain long-term economic growth, Wen said.

Wen expressed confidence in China's economy and welcomed foreign companies to share the opportunities in the country's growth, while he urged "governments should fulfill their responsibilities and put their own house in order."

The world economic recovery will be a long-term, difficult and complicated process, given to sovereign debt in some countries, high unemployment in major advanced economies and upward inflationary pressure in emerging economies, he said.

"We need to have confidence, strengthen cooperation and live up to our responsibility," he said.