China's better-than-expected economic performance in January and
February indicated that the country is capable of meeting its
growth target this year, China's top economic planner said
Thursday.
Zeng Peiyan, minister of the State Development and Planning
Commission, said: "The overall economic situation is better than we
had predicted. The GDP (gross domestic product) growth rate for the
first two months has remained at 7 percent. As China's economy
tends to accelerate in following months, I think our all-year
growth target of 7 percent is attainable.''
At
Thursday's press conference for the Fifth Session of the Ninth
National People's Congress, Zeng also unveiled the long-awaited
reform plan for the power sector. This aims to break up the virtual
monopoly of the State Power Corporation of China.
Zeng said the government plans to separate the
electricity-generating and transmission assets of the corporation,
which controls over half of China's power plants and almost all the
power grids. Most of the company's generating assets will be
injected into three or four new power-generation groups to let them
compete across the nation.
The power-transmission assets of the State Power Corporation are
expected to be split into five regional grid companies, in which
the State Power Corporation will hold the controlling shares.
Another independent grid company would be set up to cover the
southern provinces.
Zeng said all the power plants should compete to transmit their
electricity over power networks, and an independent committee would
be set up to supervise the power sector.
"As for the current contracts with foreign companies, they could
either keep their contracts unchanged or they could negotiate new
ones,'' said Zeng.
To
solve the electricity shortage in the 1980s, China promised each
foreign investor in the domestic power sector a stable high profit
return for 10 to 20 years.
Zeng admitted that China's entry to the World Trade Organization
could be painful for less efficient industries such as motor
manufacturing and pharmaceuticals, and also lead to an increased
oversupply of grain and further joblessness.
"We should provide favorable policies and systems to protect our
industries and agriculture, as the WTO rules allow,'' said Zeng.
"Compared with other WTO members, our support for agriculture is
much less. We are very much justified in lending more support,''
said Zeng.
He
added that China will seek to expand exports and imports to keep
foreign trade balanced.
"We would provide tax rebates for the exports of qualified
companies, abolish additional fees on exports of grain and cotton,
and perfect our examination system on imports,'' said Zeng.
He
also said the commission is working in conjunction with the Hong
Kong Special Administrative Region and the neighboring Guangdong
and Fujian provinces in South China, to avoid competition between
them in finance, trade, tourism, and infrastructure
construction.
(China
Daily March 8, 2002)