China Gov't sets 2005 investment plan

Byzjx

Updated Mon, 21 Feb 2005 00:00:00 GMT

The State Development and Reform Commission announced the central government's 2005 investment plan. Investments will flow to large-scale infrastructure projects and to the construction of public facilities.

    In addition, the government will continue to support the rejuvenation of central and western regions, the traditional industrial rust belt in the northeast and the development of rural China.

    The commission's Investment Department director Yang Qingwei said that in 2005, the government would issue fewer long-term treasury bonds. 13 billion bonds were issued last year. He said this is in line with current efforts to create a stable monetary policy, but stressed investment in key areas will not be affected.

    Dept. Director of State Development & Reform Commission Yang Qingwei said: "First we will continue investment in ongoing projects, such as the Qinghai-Tibet Railway and the water diversion project from south to north; secondly we will continue to invest in agriculture sector. In addition, we will intensify our efforts to save resources so as to maintain the sustainable development of the economy."

    However, rises in producer price and in investment cost remain as major problems. The director said the country would continue to keep a close eye on overheated sectors, such as iron and steel makers and cement works. He also said the government is alert to the possibility that investment in fixed assets may rebound.