In this downturn, China is relatively enviably placed. Many other countries face the paradox of having to sustain deficit spending right now but save more over time. For China, the right policy today – compensating for lost exports by boosting domestic spending – is also a sound policy for tomorrow: moving towards a permanently higher share for consumption in national output. That is a rare luxury, which will serve not only the Chinese people. As they become bigger consumers, they will also benefit the rest of the world through increased imports.

So what is China waiting for? With some $2,000bn in reserves – the result of years of accumulated trade surpluses – it has no difficulty financing public deficits to boost domestic demand. The government has already taken some useful steps. It has put in place a subsidy programme for rural residents that encourages them to buy household appliances and consumer electronics. It has also successfully expanded domestic lending through its state-owned banks.

But other actions have been half-hearted. A Rmb4,000bn investment plan was announced last year, but it is not clear that it contains much spending above what would in any case have taken place. A more reliable measurement of stimulus is the budget deficit the government plans to run next year, which Mr Wen said would be 3 per cent of China's economy. That is something – but it seems too unambitious to achieve Mr Wen's stated goal of 8 per cent growth in 2009 when exports are falling by 17.5 per cent year-on-year.