Premier Zhu Rongji met the press in the Great Hall of the People
Friday morning and answered questions on domestic and international
issues. The following are the major topics covered by the premier.
Economic Growth Rate
Farmers' Income
China's Proactive Fiscal Policy
Income Disparity
The Government's Work of This Term
Hong Kong's Economic Development
Taiwan Issue
Sino-Japanese Relations
Sino-Russian Trade Ties
Economic Growth Rate
The 7 percent economic growth target for 2002 is a practical one
and can be reached, Chinese Premier Zhu Rongji said in Beijing.
The 7 percent growth target was set after having considered various
factors, including the slowdown in the world economy, he said.
The premier said: "The economic performance in the first three
months is better than my expectation. That gives me more confidence
that the seven percent growth target can be met."
According to the predictions made by the National Statistics
Bureau, China's GDP grows 7.5 percent over the same period of last
year in the first three months, said the premier, adding he is
"proud of the unprecedented rapid development of the Chinese
economy" over the years as a result of the country's proactive
fiscal policy.
Zhu said that the government's proactive financial policy and
prudent monetary policy have been working well, and the Chinese
economy would otherwise have collapsed.
Zhu Rongji said that the current government's efforts in
infrastructure buildup will leave to the next government 2.5
trillion yuan of quality assets that will go a long way to further
promote China's economic growth.
Farmers' Income
Zhu Rongji said that how to raise the income of farmers has been
his biggest concern, but the problem can only be gradually resolved
with agricultural restructuring.
Without price rises in the past four years, the salary of
government employees is approximately doubled, the wages of workers
in state-owned enterprises have been raised by a big margin at a
time when stepping out of difficulties, and the income of retirees
is better with the improvement of the social security system.
By
contrast, the income of farmers didn't see a fast growth, and even
dropped in some areas, the premier said.
The Chinese government has made great efforts to resolve the
problem, and the premier talked a lot about agriculture and farmers
in his latest government work report.
"The best way out is to push forward the restructuring of
agriculture," the premier said, explaining that the prices of farm
produce cannot go up at a time when supply exceeds demand and the
income of farmers cannot be raised as a result.
He
added that with China's accession to the World Trade Organization,
farm products from the United States will flow into China in large
quantities.
China now has 250 million tons of grain reserves. So the government
encourages farmers to return farmlands to woodlands, grasslands and
lakes in a bid to contribute to the increase of farmers' income. In
addition, the fee-for-tax reform in rural areas will help lessen
financial burdens on farmers, Zhu said.
"I
believe that these measures will help relieve the current difficult
situation farmers face," he said.
China's Proactive Fiscal Policy
Premier Zhu said that China's fiscal deficits and government debts
are both controlled below internationally accepted warning
line.
Zhu said that most countries in the world have deficits and the
problem lies not in whether or not you have deficits, but on
whether or not the deficits are within your bearing capacity and
what causes the deficits.
He
said that China has budgeted deficits of 309.8 billion yuan for
2002, about three percent of the GNP while the amount of treasury
bonds planned to be issued will be 2,560 billion yuan, 16 percent
of the GNP, both below the internationally accepted warning
line.
Most of the deficits are attributable to spending on infrastructure
construction, he said, adding that his government will leave to the
next government 2.5 trillion yuan of quality assets that will go a
long way to promote social and economic development.
Income Disparity
Premier Zhu Rongji said China's widening gap between the rich and
the poor is expected to be narrowed in the future.
In
response to a question on the income gap issue, the premier said
China has adopted a number of policies and measures to help the
low-income groups in China, including the country's peasants, and
laid-off workers, the unemployed as well as retirees.
A
considerable portion of his government work report deals with the
issue of raising the income of the peasants, which has become one
of the priorities of the government, Zhu said at the press.
In
the meantime, the Chinese government attaches great attention to
establishing a national social security system to care for the
laid-off, unemployed and retired workers, another major task for
the government, he added.
Zhu went on to say the central government will move to bridge the
gap between the rich and the poor through fiscal budget
arrangements and taxation reform, and tax policies will be the most
important means to solve the problem.
"I
think the problem will be tackled after a period of time," said the
premier.
The Government's Work of This Term
Zhu Rongji said that he has "basically fulfilled" his promises he
made at the press conference right after he was elected premier
four years ago.
He
was satisfied with the rapid development of the Chinese economy,
which grew 7.8 percent, slightly short of the 8-percent target in
1998 when China was hit by unparalleled floods and the impact of
the Asian financial crisis, Zhu said.
He
said that he fulfilled the promises of making loss-making
state-owned enterprises end losses and turn a profit in three
years, overhauling the commercial banking system to bring the
proportion of non-performing loans down by three percentage points,
and downsizing the government by half.
Zhu said that reforms of the systems of grain distribution,
investment and financing, housing, medical care and taxation have
basically been completed or are under way, adding he was satisfied
with the reform process.
He
said with pride that his government has lived up to its promises to
the people and the National People's Congress and that is why his
government work report has been adopted with overwhelming majority
votes at every annual session of the National People's
Congress.
Hong Kong's Economic Development
Chinese Premier Zhu Rongji said that Hong Kong's role as a
financial center in Asia will continue and the city has huge
development potential.
Zhu made the remark in responding to a Hong Kong journalist who
said that many people in Hong Kong are worried that the city may
lose its position as a major center attracting foreign
investment.
The premier said that Hong Kong's long-standing position as an
international financial center and advantages in other aspects have
not diminished. In the 1970s and 1980s, Hong Kong had made great
contributions to China's reform and opening up process, a role no
other cities could compare to.
He
noted that with the development of the world economy, there need to
be some adjustments in Hong Kong's economy, and all elites in Hong
Kong are now exploring the issue. "We are willing to explore this
issue together with the government of Hong Kong Special
Administrative Region and Hong Kong people," the premier said.
"The advantages of Hong Kong have not yet been fully utilized, its
development has no limits, and there is no inland city in China can
replace the role of Hong Kong any time soon."
"The goal (of further developing Hong Kong's economy) will surely
be realized, and we should have the confidence," he said.
Hong Kong will maintain its status as a regional financial center
in Asia, said Premier Zhu.
The premier said that since Hong Kong's GDP is as large as that of
Guangdong Province, no major cities in China's inland can replace
it. Hong Kong's status as a regional financial center is
irreplaceable, he stressed.
He
confirmed that the central government and the SAR government are
trying to find ways to promote cooperation between the inland and
Hong Kong SAR.
China's WTO accession has provided more opportunities for Hong Kong
to cooperate with the inland in economic development, Premier Zhu
said, stressing the central government is sure to cooperate with
Hong Kong SAR government on any thing that is good for Hong Kong's
development.
Taiwan Issue
Premier Zhu said that there is no change in China's policy toward
the Taiwan issue. Zhu said that China still sticks to the policy of
"Peaceful Reunification", "One Country, Two Systems" and the
"Eight-Point Proposal" advanced by President Jiang Zemin.
"We will not renounce use of force in solving the Taiwan issue, "
Zhu said, "but that's directed at the die-hard elements for Taiwan
independence. And we don't have to repeat it every day and every
month," the premier said.
Sino-Japanese Relations
Zhu Rongji said that he believes Japanese crown prince and his wife
will meet with warm welcome when they visit China.
In
answering a question concerning Japanese Crown Prince Naruhito and
his wife Masako Owada's possible visit to China, put by a Japanese
reporter, Zhu said China proposed a long time ago that the crown
prince and his wife visit China.
"I
hope they will accept the invitation and I believe their visit to
China will meet with warm welcome in this country," Zhu said.
This year marks the 30th anniversary of the normalization of
China-Japan diplomatic relations, and the two sides will hold a
series of events to celebrate, Zhu said.
The two sides will enhance contacts and exchange of ideas.
"Japanese Culture Year" activities will be held in China and
"Chinese Culture Year" activities will be held in Japan as part of
the commemorative activities, the premier said.
Sino-Russian Trade Ties
China and Russia will work together to boost their trade and
economic cooperation in a bid to have bilateral trade volume
doubled in two or three years, the premier said.
Zhu said Chinese and Russian premiers would hold their regular
meeting in Shanghai this year to discuss new measures to further
advance bilateral ties, including economic and trade
cooperation.
Over the past years, the strategic and cooperative partnership
between China and Russia has been making headway, Zhu said.
He
quoted published records as saying that Sino-Russian trade volume
increased by 33.3 percent in 2001.
(China
Daily March 15, 2002)