China to avoid big ups and downs in economy
(Xinhua)
Updated: 2004-04-30 11:09

China is taking measures to maintain steady and relatively fast economic growth and prevent major ups and downs in development, Chinese Premier Wen Jiabao said Wednesday.

Wen said that the Chinese government will take forceful and effective measures to address the existing problems in the economy, such as excessive growth in fixed asset investment, bank credits and money supply and growing inflationary pressure.

Wen said the government's macro-economic control will be resolute and decisive, as well as timely and appropriate, dealing with different issues in different ways.

He noted that the Chinese economy as a whole is in good shape, with fast growth, growing profits, improving agricultural production, expanding foreign trade, surging fiscal revenue and constantly rising incomes for residents.

In order to curb excessive fixed asset investment that drove up prices for capital goods and strained supply of coal, electricity, oil and transportation, the government will tighten the supply of money and land, step up control of construction projects and exercise economy in resources consumption.

Wen said China has twice raised the reserve requirement for banks. It will also issue new regulations on tightening land management and raise capital fund ratio in fixed asset investment for certain industries.

"We believe all these measures will take effect in a period of time, and that the economy will maintain stable, relatively fast growth without major ups and downs," Wen said.

He said China will unswervingly push forward reform of the investment system and the financial sector so as to uproot of the structural and institutional causes of the existing problems.

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