The Chinese government on Friday moved to avert a possible
overheating economy by tightening controls on fixed asset
investments and money supply.
The State Council made the decision at an executive meeting
chaired by Premier Wen Jiabao, where it pledged to tackle other
problems giving priority to grain production and raising farmers'
incomes.
The government made the decision after concluding that fixed
asset investments and money supply grew excessively in the first
quarter, while its foreign trade sector is still troubled by
structural problems.
It decided to strengthen regulation of economic performance by
adjusting and upgrading redundant production capacity, curbing new
production capacity, improving efficiency of energy and raw
material consumption and coordinating demand and supply of energy
and raw materials.
The government is also to establish a mechanism to calculate,
examine and disclose progress by local governments in raising
energy efficiency and reducing discharges of pollutants and
protecting farmland.
The National Bureau of Statistics was ordered to publish in July
information on a regional and industrial sector breakdown of
per-unit energy consumption, said a statement issued by the
government.
The government pledged to continue its efforts to curb exports
of energy-intensive, highly-polluting products and low-processed
resources, and encourage imports of advanced technologies, key
equipment and resources.
China will step up reforms in rural areas, state-owned
enterprises, financial and tax systems, while encouraging job
creation and the development of welfare systems, said the
statement.
(Xinhua News Agency April 15, 2006)