The economy has to be stopped from becoming overheated and to ensure that
officials at all levels will implement the central government's policies, the
country's highest leadership said yesterday.
The Political Bureau of the Communist Party of China (CPC) gave the call
after central government inspection teams found some local governments are
ignoring the State Council's decision to save energy and cut greenhouse gas
emission, and are still investing heavily in high resource-consuming sectors.
"All the local governments, especially leading officials, should implement
the central government's measures to the letter," the Political Bureau said at
its meeting, chaired by President Hu Jintao.
It told all
local governments to understand the consequences of the blistering economic
growth: 11.9 percent in the second quarter, and 11.5 percent in the first half
of the year.
Fixed-asset investment in urban areas jumped 26.7 percent in the first half
year-on-year and a large part of the money went into industries that consume
huge amounts of energy.
"The priority now is to prevent the economy from overheating," the meeting
Hu emphasized the importance of seeing the ever-changing domestic and
international economic environment in the right perspective, and called for
continual effort to tackle issues such as excessive liquidity and overcapacity.
Agricultural production, especially grain output, should be increased and the
development of agricultural infrastructure accelerated, he said.
Efforts to save energy and reduce greenhouse gas emission should be
intensified, Hu said. People's lives should be improved by tackling problems
that concern them, such as those associated with education, employment,
healthcare, housing, and work safety.
The "commitment" to cutting energy consumption per unit of GDP by 20 percent
during the 11th Five-Year Plan (2006-10) is a "challenge", the CPC Political
Experts said some local governments don't have enough funds to meet the goal.
Huang Shengchu, president of the China Coal Information Institute, said the
current situation is not because of difference in thinking but because some
local governments lack funds.
(China Daily 07/27/2007 page1)