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China to maintain stable GDP growth in 2007


Source: | 03-08-2007 08:42

Special Report:   2007 NPC & CPPCC sessions

China's top planner says the country will adopt a gradual, cautious approach to reforms in the pricing of natural resources. China will also strive for efficient growth while keeping a rein on fixed asset investment.

Ma Kai, head of the National Development and Reform Commission, made the remarks on Wednesday.

Ma Kai says pricing mechanisms are a key part of China's economic reforms. He says prices for general commodities and services are now determined by market factors. But for crucial natural resources, like oil, prices are still comparatively low. He says they still cannot reflect the real cost of production.

Ma Kai said, "We must reform the prices of resources. But resource products are closely related to the country's overall economic performance. We must take a positive, steady and gradual measure. We will continue to build a mechanism for the prices of oil, natural gas and water. But, we will consider the reform's impact on low-income households."

On China's GDP growth in 2006, Ma Kai says the 10.7 percent rate of growth last year was within a normal range, and demonstrated improved stability.

He says fixed-asset investment has been brought under initial control. And fundamental ways to avoid a rebound of that investment lie in controlling land and credit, as well as market entry supervision.

The minister says China should do more to optimize the model of growth, and cut down consumption of energy and natural resources.

Ma Kai said, “The cost of our economic growth is too high. If we do not transform the model of economic growth and stop excessive consumption of energy, the growth will not be sustainable."

Ma Kai says the projected 8 percent GDP growth rate for 2007 is a guide for both central and local governments. He hopes governments will focus on the quality of growth, instead of speed.

The government has always placed importance on increasing energy-efficiency and reducing environmental pollution. But alarming global warming reports and China's increasing appetite for natural resources have brought a new sense of urgency to the government. And with just one more year left in their term, time is of the essence.


Editor:Du Xiaodan