China highlights macro control in economic work in 2005

Byzjx

Updated Mon, 06 Dec 2004 00:00:00 GMT

The Chinese government announced that it will continue to put macro-economic control on top of the agenda for next year's plan in order to maintain a steady and comparatively fast economic development and basically stable prices.

The conference, held from Dec. 3 to 5, is attended by all nine members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee.

The annual central economic conference, which concluded, has clarified requirements and an overall arrangement for China's economic work in 2005, based on an summery of the economic performance this year.

According to the conference, on top of the agenda for next year's plan is to further strengthen and improve macro-economic control, correctly handle the degree and key points of the control.

Other key points in the arrangement include: control the overall scale of investment in fixed assets; optimize investment structure and make readjustment between investment and consumption; adhere to the development road of new industrialization, speed up economic restructuring and the transition of growth patterns; and promote interaction among east, central and west regions of the country, so that they can complement each other and realize coordinated development.

    Also included are to continue to implement the strategy of rejuvenating the nation with science and education, speed up the development of various social undertakings, to well handle various works concerning people's interests so as to protect social stability, and to make efforts to promote economic system reforms and raise the level of opening up in an all round way.

The conference spoke highly of the central authorities' decision to strengthen and improve macro-control over the past year, which has helped restrain some unhealthy factors and avoid drastic ups and downs in China's economic development.

    Statistics show that China's gross domestic product (GDP) reached 9.3 trillion yuan (1.1 trillion US dollars) in the first three quarters of this year, a 9.5 percent year-on-year rise. The increase of the consumer price index (CPI), a key barometer of inflation, dropped nearly one percent month-on-month to 4.3 percent in October.  

 According to the conference, over-investment in some industries have been curbed effectively and weak sectors have been strengthened, thanks to the government's macro-economic control policy.

    Statistics also show that China's investment in fixed assets totaled 4.5 trillion yuan (544 billion US dollars) by September this year, up 27.7 percent year-on-year, but down 15.3 percentage points and 0.9 percentage points, respectively, when compared with the growth rates of the first quarter of this year and the first half of 2004.

    China has also witnessed an evident slowdown of the investment in some over-heated sectors, such as the steel, cement, aluminum and real estate. Stricter control over loans and land use is believed to have played an important role in holding back the over-hike in investment.

    The conference also applauded the continuous rise in economic benefits, large increase in fiscal revenue and enterprise profits, as well as new progress in employment and re-employment work.

    China realized a fiscal revenue of 420 billion yuan (50.7 billion US dollars) in the first three quarters of this year. The industrial enterprises reported a total profit of 913.3 billion yuan (11.2 billion US dollars) from January to October, a 39.7 percent year-on-year rise. The country's import and export value is also expected to exceed 1 trillion US dollars, placing it third in global trade.

    The conference scored the government's macro-control policies and measures over the past year as "timely, accurate and effective" under the guidance of the scientific viewpoint of development. But it also warned that some deep-rooted problems hindering healthy growth of the economy remain unsolved.

    The conference called for further efforts in handling the relationship between the market mechanism and macro-control, optimizing the economic structure, promoting the coordinated development and improving related systems and mechanisms.