China will minimize any negative external economic impact and maintain a stable and relatively fast growth if it applies appropriate macroeconomic measures, a National Development and Reform Commission official said yesterday.
Han Yongwen, spokesman and secretary-general of the top economic planning agency, said he based this assessment on the huge and sound economy China has built over the past three decades and its enormous domestic market.
He believed China could minimize any negative impact by expanding domestic demand and increasing investment in crucial infrastructure, particularly in rural areas.
According to Han, although gross domestic product growth slowed to 9.9 percent in the first three quarters of this year, that was still more than the average for each of the past 30 years. The rate partly reflected the government's macro-control efforts, which emphasized maintaining growth while curbing inflation.
Han noted that in the first nine months, the economic structure further improved and the three major driving forces of the economy - exports, investment and consumption - tended to be balanced.
The chief economic problem was worsening downward pressure, he said, citing exports being driven down by shrinking demand abroad, as well as weak domestic demand and higher costs, which were hurting corporate investment sentiment.
"Facing these difficulties, we should enhance confidence," Han said. "It is imperative for us to perceive favorable conditions and positive factors for acting against the negative outside environment and promoting development in a scientific way."
He believed economic fundamentals were sound and China's risk prevention abilities had been reinforced over the past 30 years.
To increase domestic demand, more money would go to farmers, rural areas and agricultural production, and more investments would be made in railways, urban rail systems and environmental protection facilities. The country would encourage enterprises to increase investment and push forward technical progress, Han added.
Wu Xiaoling, former deputy governor of the People's Bank of China, said over the weekend that fiscal and other policies were more important than monetary policy to maintain economic stability amid a complex global economic situation.
(Xinhua News Agecncy November 5, 2008)
