China curbs growth of overheated sectors

Byzjx

Updated Thu, 22 Jul 2004 00:00:00 GMT

China has effectively curbed the breakneck growth of its credit and investment sectors, and is making progress on the structural adjustment of other overheated sectors, said an official from the State Reform and Development Commission (SRDC) here Tuesday.

    According to Zhu Hongren, soaring prices of raw materials and the expansion of the steel, aluminum and cement sectors have been checked and the supply of coal, oil and electricity is on a steadyrise.

    The SRDC statistics show that from the first quarter to June, the rate of growth of steel production fell from 26.4 percent to 13.8 percent and that of aluminum and cement fell 9.2 and 10.6 percentage points respectively.

    Zhua said investment in the cement industry has been cooled in Zhejiang, southern Jiangsu and southern Anhui, while outdated technologies in the aluminum industry have been increasingly abandoned, and production of over-supplied types of steel reduced.

    Zhu warned, however, that fundamental problems in China's economy still remain unsolved, including staggering fixed investment, improper investment structures and shortages of coal, oil and electricity.

    Industrial enterprises are also facing cash shortages as a result of rising prices stemming from high international oil prices. Enditem