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National Economy Still Strong and Healthy

China is expected to achieve a 7 percent economic growth rate next year despite the current global recession, a top National Bureau of Statistics (NBS) official said recently.

Qiu Xiaohua, deputy head of the NBS, said at a symposium on the national economy that the international community has reached a consensus on the need to fight terrorism and revive the economy, which will lead to the early invigoration of the sluggish economy.

He said China has so far maintained a sound economic performance featuring a rapid growth rate, low inflation and high profits. In addition, he said, China's entry into the World Trade Organization (WTO) will further boost its economic development.

Qiu attributed the country's stable economic performance to a series of macroeconomic policies aimed at expanding domestic demand since 1998.

Zeng Peiyan, minister of the State Development Planning Commission, also pinned his hopes on foreign investment and public debt to spur the country's economy in 2002.

"We should try hard to earmark more foreign capital," Zeng said at a national economic planning conference that ended yesterday in Beijing.

Official statistics indicate that China is likely to attract US$59.4 billion in foreign capital. Of that, US$47 billion will likely be direct investment.

Zeng said China will explore new channels for using venture capital and investment funds from other countries.

"Foreign investors, especially international giants, are welcome to participate in the reform and restructuring of State-owned enterprises," Zeng said.

Zeng also said the central government encourages foreigners to invest in high-tech industry such as information technology, biological engineering and new material and basic industries such as chemicals and building materials.

"Infrastructure construction will require much investment, especially in the west," Zeng said.

(China Daily December 5, 2001)

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