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Chinese economy takes on 4 fine tendencies
(People's Daily Online)
Updated: 2004-10-28 15:39

After the implementation of the macro-control policy there come to appear four fine tendencies in the deep strata in Chinese economy, said Qiu Xiaohua, deputy director of the National Bureau of Statistics.

First and foremost is that the industrial structure has taken on a tendency for improvement with the insufficient development of the primary and tertiary industries and too fast a development of the secondary industry being improved.

The second is that the relationship of investment and consumption is heading towards an improvement. The increase of investment is on the decline while the consumption is getting quicker with an obvious enhancement contributed by consumption to the growth of economy. The first half-year saw a growth of 9.7 percent in economy and a 4 percent rise contributed by consumption to the economic growth.

The third is that there is an improvement in the balance of imports and exports. Though there is still an unfavorable balance of US$490 million in the period from January to July yet the whole year will see a balance at large with a little in the surplus.

The fourth is that there sees an improvement in the unbalanced development between cities and rural areas. This is expressed in an integrated way a turn for the better in rural consumption and in the increase of farmers' income.

The macro-control and adjustment this time is a preventive and positive one, said Qiu Xiaohua and is mainly for solving the problems in the following two aspects. The first is the investment problem and the second the weak-link in agriculture. It is a mild and structural adjustment and control. In the meantime attention has been paid to solving system and mechanism problems in economic life by adopting a series of measures for the adjustment and control.

With regard to the problems in economy at present, they are mainly expressed in the following three aspects as Qiu Xiaohua holds. First of all, it is the transportation and transmission of coal, electricity and oil and especially there is no full solution of the contradiction in the tightened power-supply. Next is that the problem of partially enlarged investment hasn't been solved and the third is the emergence of some new problems. There is a further revelation of structural contradiction in bank credits and loans. And by the way, with the gradual implementation of the macro-control the unhealthy reflection of excessive investment, blind construction and the repetition at a low level began to come to a head. This is mainly expressed in payment arrears in among enterprises and the stacked-up of products.

Qiu Xiaohua is of opinion that the macro-control policy to be taken next centers in the following six aspects. That is to stabilize the policy by observing the situation calmly and composedly; to consolidate the achievement in prevention from relapse; to treat things differentially by regulating the structure; to deepen the reform by stepping up the governance by law; to make overall plans by taking all things into consideration so as to realize a long-and-short-term combination and finally to form a concerted effort by unifying all viewpoints.

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