The Chinese economy remains in good shape despite some problems that appeared
as the economy soared in the first half of this year, top Chinese officials
China's gross domestic product (GDP) grew 11.9 percent in the second quarter
and 11.5 percent in the first six months of 2007.
But Ma Kai, minister of the National Development and Reform Commission, said
that more efforts have been made this year to ensure that the economy grows in a
sound and stable manner.
The commission announced on Friday that the central government had
contributed a further 10 billion yuan ($1.32 billion) to the drive to promote
energy saving and cut pollutant emissions. It also increased investment in
agriculture and stabilizing pork prices.
The State has also taken a series of measures to rein in investment, slow
down exports, increase imports and reduce liquidity, which has pushed up the
prices of assets.
As a result, positive signs have emerged that point to more balanced economic
The economic structure, which has leant towards industry and investment, has
improved as the service sector grows and consumption rises.
In addition, the competitiveness of Chinese firms has been improved as a
result of technological upgrading.
The profit-making capacity of Chinese enterprises is also on the rise. Major
industrial enterprises raked in a total of 900 billion yuan ($118.9 billion) in
profit in the first five months of this year, up 42.1 percent year-on-year.
Chinese farmers reaped a hard-won harvest this summer despite severe natural
disasters, such as heavy rainfalls.
Energy efficiency is also improving, while energy consumption per unit of GDP
is continuing to fall, as is the emission of pollutants.
Xie Fuzhan, director of the National Bureau of Statistics, said the economy
is generally in good shape, as its quality is improving and people benefit more
from economic growth.
The economic growth rate should not be the only factor for judging the
soundness of the economy, he said. A comprehensive method should be adopted that
looks at the economy from such perspectives as improvements in employment,
economic quality, structure and people's living standards, added Xie.
Although consumer prices are rising strongly, they have been driven mainly by
rising food prices, which are also a victim of international grain price rises.
Analysts said that as domestic supply is growing rapidly, food prices would
not continue to rise.