Fortifying gains of growth

Economic restructuring through enhanced means and sound policy-oriented finance will prevent inflation

President Hu Jintao has called on the entire nation to expedite economic restructuring and make it a strategic focus for the adjustment of the development pattern. The country has seen a turnaround in macro-economy. But it is important to optimize economic restructuring in order to consolidate macro-economic regulation, transform the economic development pattern and realize long-term stable and rapid economic growth.

This is a good time to optimize economic restructuring, because deflation fears have faded away and inflation worries are in the nascent stage. As the economy entered the turnaround phase last year, the principal aspect of contradiction in macro-control shifted from insufficient domestic demand to structural restrictions. And the structural problems of excess capacity, extensive development and low-level redundant construction have become deep-seated factors constraining long-term development.