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China will accelerate government investment in an effort to reduce the negative impact of severe acute respiratory syndrome (SARS) on the economy.
The State Development and Reform Commission (SDRC) issued a circular calling for better management of investment projects in the country to ensure economic growth.
The SDRC also held a tele-conference on Wednesday to promote a rapid and continuous increase in investment in fixed assets.
Statistics indicate that in the January-April period of this year, China invested 726.5 billion yuan (US$87.7 billion) in the state-owned and other sectors, representing an increase of 30.5 percent on the same period last year.
The Chinese government would take measures to increase investment in the major sectors, accelerate projects under construction, make sound preparation for key projects, and encourage social investment.
The SDRC said that priority would be given to state bond and investment projects under the government budget.
The government would also give favorable treatment to projects aimed at improving the livelihood of rural areas, increasing employment and developing the western region.
The SDRC required local governments and state-owned banks to provide financial support to key projects and to increase corporate bonds.
The commission emphasized that projects under construction, such as the Yangtze Three Gorges Dam, the gas pipeline linking the west to the east part of the country and the Qinghai-Tibet railway must proceed smoothly.
In order to boost investment in the community, the government would continue to loosen guidelines on investment.
Domestic investors would be able to invest in most sectors open to foreign investors, with a few special exceptions.
The government would also encourage and direct domestic investors to participate in business-oriented infrastructure projects.
(Xinhua News Agency May 22, 2003)
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