Home Business Politics Life Culture��Edu Sci��Tech Sports Photos
��Search
China Observer
�� Boao, small fishing town in the process of amazing changes
�� Beijing's local snacks disappearing fast
�� A closer look at luxury goods consumption
Photos
�� Ieoh Ming Pei to design Suzhou Museum
�� Hangzhou builds huge urban sculptures
�� Classical Chinese furniture on display
��Home>>Business
Chinese govt moves to cool economic growth
www.chinanews.cn 2006-04-28 08:45:07
(Source: Xinhua)
BEIJING, Apr.28 - China's economic watchdog is moving to slow economic
growth after recording a rise in fixed assets investment of almost 30
percent in the first quarter.
The National Development and Reform Commission (NDRC) has urgedlocal
governments to tighten controls on land use and lending to prevent
investment rising too rapidly.
National Bureau of Statistics figures show investment in roads,factory
equipment and other fixed assets grew 27.7 percent, an increase of 4.9
percentage points year on year.
Investment in urban areas climbed 29.8 percent to 1.16 trillionyuan,
while that in rural areas came to 230 billion yuan, up 18.1 percent.
The government has launching the "socialist new countryside" campaign to
boost rural development, which was left behind in the reform and
opening-up drive of the past two decades.
However, more than half of China's provinces recorded alarming growth
rates or more than 35 percent in investment, and 16 manufacturing
industries reported more than 40 percent.
Fan Jianping, an expert with the State Information Center, saidlocal
governments had planned too many projects this year, the start of the new
11th five-year blueprint, risking overheating thenational economy.
Zhang Liqun, a research fellow with the Development Research Center of
the State Council, said the soaring investment was tied into recent
elections of local officials, who encouraged investment to demonstrate
their political performance.
The State Council had outlined a decision, made at an executivemeeting
chaired by Premier Wen Jiabao this month, to avert an overheating economy
by tightening controls on fixed asset investment and money supply.
The high rate of investment in some regions and industries had resulted
over-production in many sectors, he said.
Steel, aluminum, calcium carbide, cement, coal, automobiles and textiles
are among the main over-producing industries.
The NDRC said domestic demand for cement in 2005 was less than 1.05
billion tons, while production capacity was 1.3 billion tons, of which
about 60 percent was low-grade.
The NDRC was in the process of publishing policies to halt
over-production in key industries, said a spokesman.
The Chinese Academy of Social Science (CASS) on Monday issued are port
predicting gross domestic product (GDP) is to grow by 9.6 percent this
year, while fixed assets investment will exceed 10 trillion yuan,
accounting for 52.7 percent of GDP.
Experts with the CASS said the government should adjust the policy to
encourage domestic consumption, so as to ease the burden of
over-investment.
Copyright� 2004 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
Disclaimer: viewpoints in the website do not represent China News Service
Learn Chinese, Chinese language, Learning Materials, Mandarin audio lessons, Chinese writing lessons, Chinese vocabulary lists, About chinese characters, News in Chinese, Go to China, Travel to China, Study in China, Teach in China, Dictionaries, Learn Chinese Painting, Your name in Chinese, Chinese calligraphy, Chinese songs, Chinese proverbs, Chinese poetry, Chinese tattoo, Beijing 2008 Olympics, Mandarin Phrasebook, Chinese editor, Pinyin editor, China Travel, Travel to Beijing, Travel to Tibet
No comments:
Post a Comment