Various levels of government have been urged to remain
sober-minded when applying national monetary tightening and fiscal
prudence policies.
National Development and Reform Commission Minister Ma Kai
listed "preventing economic growth from evolving from rapid to
overheating and preventing price hike shifts from going from
structural to inflationary" as top priorities.
Speaking at a three-day annual development and reform conference
starting Friday, Ma echoed the top national leadership, urging
participants to "unify thoughts" and give priority to the "two
preventions".
He explained the potential international recession, and the
country's investment frenzy, flooded money supply and trade
surplus, are headaches for China's leadership.
They also face challenges such as a weak agricultural sector,
arduous energy conservation and emission reduction tasks, and
public welfare issues, he added.
The conference is the second high-level meeting within a week
mobilizing resources for "sound and fast" economic growth in 2008.
After a Monday-through-Wednesday closed-door meeting, China's top
decision-makers prepared a list of "development tasks" for the
National People's Congress to vote in March.
Before March, provincial and municipal-level governments and
people's congresses would meet to discuss the investment spree and
inflation.
Ma said monetary policy should play a greater role in
macro-control policies, and China would strictly control loans to
better regulate domestic demand and balance international
payments.
Since 2003, China's economy has developed at an annual average
rate of more than 10 percent. The figure reached 11.5 percent in
the first nine months of 2007.
Ma identified several major economic tasks for 2008:
Using macroeconomic controls to prevent the economy from
overheating and price hikes from leading to evident inflation.
Fully implementing tight monetary policy and prudent fiscal
policy, while increasing fiscal expenditure in social security,
medicare, sanitation, education and household benefits. Low-income
families should receive more stipends offsetting price hikes.
Consolidating the role of agriculture in China's economic
growth.
Basing technical innovation on market demand and centering it on
technologies to overcome development bottlenecks. Enterprises
should take center stage in innovation to boost national
competence, and reduce emissions and conserve energy.
Use prices, taxations and financial policies to stimulate energy
conservation while establishing environmentally friendly and
compulsory market access criteria.
(China Daily December 8, 2007)
