The central government will introduce stricter controls on
fixed-asset investment as well as rein in growth of liquidity and
trade surplus, a statement posted on the State Council's website
said yesterday.
The country's overall economic and social development is sound
but outstanding problems exist, concluded an executive conference
that the State Council held on Wednesday to analyze the economic
situation.
The State Council stressed the need to strengthen macroeconomic
controls to facilitate change in the growth pattern and prevent the
economy from overheating.
In the first three months, domestic banks granted new loans of
1.42 trillion yuan (US$184 billion), about half of what they had
lent last year. Meanwhile, the country's fixed-asset investment
went up 23.7 percent year-on-year, reversing the trend of a gradual
slowdown since mid last year.
The State Council vowed to raise energy efficiency and
environmental standards to rein in investment growth. It will also
strengthen guidance for bank lending to check excess growth of
money supply.
Unreasonable preferential policies for exports will also be
looked at to check growth of trade surplus, according to the
statement.
(China Daily April 20, 2007)