The National Development and Reform Commission (NDRC) began a two-day discussion on Wednesday to draft next year's targets for national economic and social development.
The NDRC -- China's powerful cabinet-level economic policymaking body -- came up with suggested indicators for economic growth, employment, consumer prices and grain production. It declined to reveal specific targets, which will be decided at the annual session of the National People's Congress (NPC) in March.
Vice Premier Zeng Peiyan has directed the NDRC to make sustainable economic development and resource utilization, as well as environmental protection, key considerations in setting policies for the coming year.
NDRC spokesman Cao Yushu said earlier this week that the economy is expected to continue growing rapidly next year, although the rate should decline moderately from this year's.
Economists believe the central government may set a GDP growth target lower than 8 percent for next year to encourage local governments and investors to focus on efficiency and profit rather than scale of investment.
The situation bears similarities to last year's. In December 2003, the NDRC established a target of 7 percent for this year, a significant drop from 2003's 9.1 percent. However, China's GDP still climbed 9.5 percent in the first three quarters of the year.
A low target is intended to curb the excessive growth in some sectors that is putting a strain on transportation and power supplies, driving up the prices of raw materials and damaging industries nationwide.
Senior economist Liu Guoguang, of the Chinese Academy of Social Sciences, believes that China needs a relatively long period of strong economic development to solve such problems as poverty, education and an underdeveloped social security system.
"So far, our economy as a whole is not overheated, but investment needs a soft landing," said Liu.
In drafting its policies, the NDRC is keeping a sharp focus on resource conservation. The country's lightning-speed industrialization and attendant gobbling of resources has created a number of shortages and bottlenecks.
(China Daily December 9, 2004)
