The primary task of China's 2008 economic work has been set "to
prevent the economy from becoming overheated and to guard against a
shift from structural price rises to evident inflation" a key
economic meeting said on Wednesday.
The annual Central Economic Work Conference concluded that the
key for next year's macro-economic control was to keep in check
"economic gross value, price stabilization, structural adjustment
and to promote balance".
The meeting said the country would rationalize fiscal
expenditure to boost structural adjustments. Expenditures on social
security, health care, education and housing would be increased
significantly.
Credit growth would also be strictly checked to accommodate
social demand and to promote a balance between foreign spending and
earnings. New projects would go through rigorous examination.
The government would take "forceful measures" to curb price
increases and "intensify" production of necessities, including
grain, edible oil, meat and other products in short supply.
It would also continue to "improve the reserve system, improve
price forecasts, keep a close watch on price movements, step up
market supervision and offer allowances to low-income people".
The meeting stressed that China's industrialization and
modernization process is now at a critical point. The incidence of
many problems is, to a great extent, a reflection of the
fundamental realities of the country and its current development
phase.
In October, the 17th National Congress of the Communist Party of
China (CPC) pointed out that consumption should play a more
important role in the country's economic growth to relieve its
reliance on investment and export.
Primary and tertiary industries, along with secondary
industries, should have a "concerted effect" on the country's
economic development. China should also rely more on technological
innovation, advances in human resource qualities and managerial
levels to boost its economy, rather than mainly depending on
consumption of material resources, according to the CPC
Congress.
(Xinhua News Agency December 6, 2007)
