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Welcome, new growth model

By Mark Williams | China Daily | Updated: 2011-03-09 08:00

Premier Wen Jiabao put price stability at the center of the government's concerns in his speech over the weekend. So here is a question for deputies to the National People's Congress to ponder during their long hours in the Great Hall of the People. Why do so many families in China struggle when prices of basic products rise?

The simple answer is that many families' income does not stretch far beyond the necessities. Especially with food prices rising rapidly over the past year, the poor families are inevitably feeling squeezed. Though there are signs that the inflation problem has not deteriorated in the last couple of months, it will be a while before the problem is totally eliminated.

The drought in northern China is raising questions, too, on how long grain supplies will last.

Welcome, new growth model

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