Qiu Xiaohua, vice director of State Administration of Statistics (STATS) estimated on December 23 that 2001 would see an economic growth about 7 percent or 8 percent with no radical change.

The above opinion was released on 2001 Symposium of Securities Market Expectation organized by the China Securities Association (CSA). In the year 2000, the industrial profit increased 92 percent in January-November period, among which the profit of state and state-held enterprise surged by 140 percent, he said. 3-year reform to get rid of the poverty of the state-owned enterprises is only the goal in certain phase. More strength will be put on the transformation of large and medium-sized state owned enterprises next. Then those enterprises with well operational results and high growth will be boosted to list in the capital market while those to be improved will be aided by political injection.

Qiu also expressed that 2001's political environment will benefit the economic growth. The present effective policies which have stimulated the economic growth will be sustained to stabilize the benign prospects. Next year domestic demand will still take the leadership in pulling up the economic growth. All together there are three propelling factors. First, the increase of farmers' income will stimulate their income prospects; second, the soaring social investment will further eliminate the barriers of civilian investment; third the surge of civilians' salary will boost the stable growth of urban consumption. He also pointed out the export growth next year would be lower than this year's.

(People's Daily 12/25/2000)