China reaffirms macro-economic controls policy

Byzjx

Updated 2004-09-15

China's premier ruled out any loosening in Beijing's macro-economic controls, in spite of fresh evidence of slowing growth and complaints from companies thrown into crisis by curbs on bank lending.

Wen Jiabao, prime minister, reaffirmed the government's commitment to the restrictions on bank lending, land usage and property development that it has imposed since late 2003. He did not reveal whether China was planning to adjust interest rates for the first time in nine years.

The tough line came hours after China announced statistics showing the economy was responding to government curbs.

Fixed asset investment, the main driver of economic growth, increased 26.3 per cent in August compared with August 2003, down from a 32 per cent increase in July.

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