"Despite the downward pressure on the Chinese economy since the fourth quarter of last year, we have nonetheless seen signs of recovery," Liu Tienan, vice chairman of the country's top economic planning body, told reporters.

The export-dependent Chinese economy expanded by nine percent in 2008, down steeply from 13 percent growth the year before. In the fourth quarter of last year, it expanded by just 6.8 percent.

China has only released very limited data about how its economy has performed since the beginning of 2009, but some of the figures have been slightly more positive than expected.

For example, state banks extended a record 1.2 trillion yuan (175 billion dollars) in loans in January as they heeded calls by the government to help boost the economy.

The government's purchasing managers' index, which gauges the level of activity in the manufacturing sector, rose to 45.3 percent in January, up from 41.2 percent in December.

And compared with December, consumer prices in January rose 0.9 percent, the statistics bureau said earlier, although this partly reflected a pick-up in consumption as a result of the Lunar New Year, which fell in January this year.

This came after several independent estimates forecast a bleak year for China in 2009. The World Bank has forecast 7.5 percent growth this year, which would be the lowest level since 1990.

China, on the other hand, has set an official economic growth target in 2009 of eight percent, considered by the government to be the minimum needed to prevent unemployment reaching a level where social unrest breaks out.

"We have the conditions, the ability and the confidence to achieve eight percent growth," Liu said.

Liu said his National Reform and Development Commission would await full first-quarter data before judging growth trends in early 2009.

"However, I believe that after a series of measures have been implemented, we can maintain good and fast development momentum," he said.

Among steps taken to counter the crisis was an unprecedented four-trillion-yuan (580-billion-dollar) spending package unveiled in November last year.

Liu indicated in Friday's briefing that despite the added spending, China's budget deficit would not spin out of control.

"Investments are a very important, very efficient, and very direct measure," he said.

"In this situation, deficits are necessary, but I assure you the deficits are within the limits of what's acceptable, and under control," he said.

Liu also said protectionism offered no way out for China as it would not offer long-term relief.

"Protectionist measures may have some short-term effects, but it definitely amounts to short-sighted behaviour," he said. "I can tell you all that we oppose protectionism."

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