China limits building of villas, golf courses
Updated: 2005-12-21 17:25
China plans to limit the building of villas, golf courses and other luxury
projects in an effort to protect the environment and prevent wasteful
investments, the government said Wednesday.
The restrictions are among a
list of targets contained in the Guiding Catalogue for the Adjustment of
Industrial Structure, issued on Wednesday by the National Reform and Development
Commission, calling on local officials to encourage promising industries such as
telecoms while discouraging businesses that waste energy and other resources.
The building restrictions are meant to limit "blind investment" and protect
the environment, Liu Zhi, director of the National Reform and Development
Commission's Department of Industrial Policy, said at a news conference in
The central government is trying to rein in a building boom that could
fuel inflation and leave China littered with unneeded shopping malls, luxury
housing and other projects, threatening banks if developers default on loans.
The State Council, or the cabinet, in the Decision of the State Council on
Implementing the Interim Regulations on Promoting the Adjustment of Industrial
Structure, urges local governments to take such adjustment as "a major
According to the document released by the State Council, local
governments are called on to design measures to properly guide investment, so as
to encourage and support the development of "advanced productivity" while
limiting the growth and finally eliminating the out-of-date industries, as well
as prevent blind and repeated investment.
It also asked relevant departments to speed up formulation and amendment of
policies on finance, credit, land use, international trade and other issues, so
as to facilitate and pushforward the industrial structure adjustment.
According to the State Council document, local governments should
properly handle the relationship between government guidance and market
regulation, and let market be the main player in resource allocation.
In the meantime, relevant departments are required to properly deal with the
relationship between growth and stability, between partial interests and
holistic interests, and between short-term and long-term interests, so as to
maintain a rapid and stable economic development.
The National Development and Reform Commission also issued on Wednesday the
Guiding Catalogue for the Adjustment of Industrial Structure as a supplementary
document to the State Council Decision.