Premier Wen Jiabao said China's economy was responding appropriately to its stable policies, adding relatively fast growth would help create jobs and boost domestic demand, the Xinhua news agency reported on Sunday.

Ending a three-day visit to the northwestern provincial capital of Xi'an, Wen said the country's economic performance was consistent with the government's macro-economic controls.

China last week reported a moderation in annual gross domestic product growth in the second quarter to 10.3 percent from 11.9 percent in the first three months of the year.

On Friday, the premier attributed the slowdown in part to his government's policies, which include steps to limit lending to property developers, home buyers and indebted local governments.

In Xi'an, he reiterated a call for restructuring to boost domestic demand.

The global economy is recovering, but at a slow pace. There are many uncertainties. We should expand domestic demand while stabilizing overseas demand, he said.

Only through sound and relatively fast economic growth can we ensure employment and facilitate the restructuring of the economic development mode.

Wen made visits to an auto-assembly line, a high-tech agriculture firm and aerospace and metals research firms, stressing the need for Chinese initiative and creativity.

The world is experiencing a technological revolution and one of its key fields is materials technology. We must always remember that high technologies cannot be bought. We have to rely on ourselves, he said.

(Reporting by Ken Wills, editing by Jonathan Thatcher))

China