China will tighten control over investment in fixed assets, especially blind investment in certain industries, according to the executive meeting of the State Council held Wednesday.
Chinese Premier Wen Jiabao chaired the meeting.
The Chinese government will tighten market entry and slow down approvals for projects, land use and loans for certain industries which have grown irrationally following over-investment.
The country still faces several economic problems such as the blind expansion of investment in certain industries and shortages of energy supply.
Official estimates showed that the annual growth of investment in fixed assets is 23 percent for the whole year, contributing to 60 to 70 percent of the growth of gross domestic product (GDP).
Tang Ming, chief economist of the Asian Development Bank (ADB) Resident Mission in Beijing, said the real growth rate of capital investment in the first three quarters of the year was higher than that in the overheated period of 1993-94.
Minister of Finance Jin Renqing said Wednesday that China will adjust the use of treasury bonds.
Treasury bonds will go to economic restructuring and realizing a balanced growth, he said.
The government will also work on relieving shortages of coal, oil and electricity supply and heavy pressure on the transportation sector, according to the meeting.
Efforts will be made to increase grain planting, the agricultural tax will be cut and preferential policies will be given to grain-growing provinces while the government will guarantee the supply of agricultural material.
At the meeting the State Council vowed to guarantee commodity supplies during the New Year and Spring Festival vacations.
A "green passage" will be set up for farm produce and local governments will be banned from raising prices of public utilities in holidays.
(People’s Daily December 25, 2003)
