Latest News:  
Beijing   Sunny    1 / -10   City Forecast

People's Daily Online>>China Politics

Premier calls for confidence in supporting growth (2)

(Xinhua)

08:27, January 04, 2012

Chinese Premier Wen Jiabao (C) visits rural migrant workers in a construction site in Xiangtan, central China's Hunan Province, Jan. 1, 2012. Wen made an inspection tour in Hunan's Xiangtan City and Zhuzhou City on Jan. 1 and 2. (Xinhua/Rao Aimin)

The premier noted that China is caught in a position where pressure for an economic downturn and high price levels both exist.

Compared with 2008, when the global financial crisis hit, dwindling external demand and rising costs for enterprises have further complicated the current situation, he said.

"We have a relatively cool market, which is the core of today's problems," Wen told the entrepreneurs.

Boosting domestic demand focuses on consumption demand but also includes investment demand, he said, while stressing that investment must be better structured.

Investment in industries with overcapacity, high pollution and energy intensity, and redundant construction must be curbed, he noted.

The government has underlined a balance between sustaining growth and controlling inflation. The central bank hiked banks' reserve requirement ratio (RRR) six times and the benchmark interest rate three times in 2011 before cutting the RRR in December.

In response to business concerns over fund strains caused by the monetary tightening, Wen reiterated the line of fine-tuning and presetting monetary policies.

"There lies an issue of structure in fund supply. We can't talk about the scale of loans and liquidity on a general level, but should instead analyze the situation of different industries and companies thoroughly to solve the problems one-by-one," he said.

In the visit to a locomotive company, Wen urged the rail industry to strengthen scientific design, staff management and after-sales service, and put safety and quality as the top priority in research and manufacturing.

A high-speed train rammed into a stalled train in east China's Zhejiang province in July, leaving 40 people dead and 172 injured. Official investigators cited design flaws and mismanagement as the cause.

Wen said he "felt deeply sad" about the accident while calling for the continuous development of the high-speed rail industry.

"The accident taught us a lesson and made us understand that we must work arduously with stronger senses of confidence and responsibility to achieve the safe, healthy and sustained development of China's high-speed railways," Wen said during the visit.

【1】 【2】

Email|Print|Comments(Editor:雪萌)

Related Reading

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Travel peak in Sichuan during New Year holiday

  2. Natural masters of disguise

  3. Pets get a new look: Let's rock and roll!

  4. Egypt's ex-President Mubarak's trial resumes

Most Popular

Opinions

  1. Common development with neighbors
  2. Japan's case of flawed priority
  3. Move to send 'alarming signal' across Asia
  4. EU's airline carbon tax may backfire
  5. Asian countries refuse to 'take side'
  6. US uses 'hedging strategy' to deal with China's rise
  7. What is behind US 'Return-to-Asia' strategy?
  8. China's GDP growth may slow to 8 pct in 2012
  9. China's economy not to suffer a hard landing
  10. Common interests prevent 'Cold War'

What's happening in China

Waiting for a baby

  1. Viewers complain ads last too long
  2. Chinese head to science museums for holiday
  3. Man with bird flu dies in Shenzhen
  4. Criminal law on NPC agenda
  5. Top legislature to hold annual session on March 5

PD Online Data

  1. Traditional Mooncakes
  2. About Mooncakes
  3. History of Mooncakes
  4. Modern Mooncakes
  5. Legends of Mid-Autumn Festival