Face Up to Difficulties, Fortify Confidence: Commentary

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Last updated at: (Beijing Time) Tuesday, May 20, 2003

Face Up to Difficulties, Fortify Confidence: Commentary

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The sudden outbreak of SARS (severe acute respiratory syndrome) has exerted increasingly apparent influence on the national economy, particularly great impact on civil aviation, tourism, catering, commerce and trade, taxi and other trades.

In order to prevent the infection of SARS virus, people have reduced excursion, cancelled large-scale meeting, exhibition, tour, dinner party and other activities, some markets, restaurants and hotels have very few customers, and taxi and aviation companies have a declined source of passengers, the orders for goods and business volume of some enterprises have witnessed a steep fall, thus incurring notable economic losses to the State, enterprises and individuals, this situation must not be neglected.

However, we should also notice that although SARS has come in full force, it is not overspread, the great impact it exerts on the economy is mainly in areas where the epidemic situation is serious and on communications, transportation and service industries.

The urgent task at the moment is to resolutely carry out the central government's plans for the work of preventing and treating SARS and bring the epidemic situation under control as quickly as possible. Only by doing so is it possible to create a stable environment for economic and social development and reduce losses to the minimum.

We should have a sober and full understanding of the influence of the epidemic situation, we should see both the severe impact of SARS, and the favorable conditions for overcoming difficulties; we should take note of both challenges and opportunities, and fortify our confidence in attaining the goals for economic growth of this year.

At present, China is in the period in which the economic development situation is the best and the macro-economy is most stable, this is the foundation for us to overcome the adverse effect of SARS and maintain a stable economic development.

Persistently carrying out the principle of expanding domestic demands over the past consecutive years and implementing the proactive fiscal policy and a prudent monetary policy have effectively promoted investment, consumption and export, and have gradually formed a domestic production growth mechanism, as a result, China's economy has begun to enter a new period of growth. The growth rate of GDP in the first quarter of this year reached 9.9 percent, the highest in the past six years.

It can be said that with China's huge domestic market, the enhanced adaptability of enterprises and vast room for movement of the economy, there is great potential for maintaining the good momentum of economic growth.

The notable growth of China's economic strength in recent years and the substantial increase in financial revenue have provided reliable financial support for overcoming the adverse effect of SARS and maintaining stable economic development.

Currently, the State's foreign exchange reserve has exceeded US$300 billion; financial revenue in the first quarter hit 520.5 billion yuan, a year-on-year growth of 36.7 percent, the highest growth rate in the past 10 years. This has, without doubt, greatly enhanced the government's ability to cope with the SARS crisis and regulate the economy.

Recently, financial departments at various levels have successively increased allocation of special funds for the prevention and treatment of the SARS disease; some localities have timely allocated sources of goods and increase production and imports to guarantee the supply of medicine against SARS and other daily-use commodities; relevant departments have instituted some preferential policies on reducing and exempting charges and taxes, so as to support such industries as civil aviation, tourism, catering, commerce and trade and taxi which are greatly affected by SARS.

All these actions have eloquently proved that the Chinese government and people who had experienced the Asian financial crisis in 1997 and the worst floods in 1998 entirely have the capabilities and conditions to defeat the SARS crisis and overcome the adverse influence of SARS on the economy.

While civil aviation, tourism, catering, commerce and trade and other industries are subjected to the impact of SARS, there is a rising market demands for e-commerce, communication equipment, health protection articles and sport and keep-fit goods, some new growth points of consumption are making their appearance.

At the same time, the growth trends of China's iron and steel, automobile, chemical, home appliance, medicine and other industries remain strong. The rate of contribution made by the industrial economy to the growth of the entire national economy in the first quarter of this year stood at about 55 percent. These constitute an important force boosting economic growth and contain an opportunity for the adjustment of economic structure.

We should adopt effective measures to support those industries deeply affected by SARS to surmount difficulties and reduce losses to the minimum; meanwhile, we should seize the opportunity to actively cultivate new consumption and economic growth points, spur those industries having market and potential to accelerate development, "losses suffered by those inside the dyke are made up by those outside the dyke", in this way, it is possible to maintain the momentum of the stable development of the entire national economy. It is gratifying that some related industries and enterprises have begun making adjustment on their own initiative and actively adapted themselves to market change.

Recently, the SARS epidemic situation has somewhat eased, but we must never let down guard, nor should we slacken off or become careless. We should estimate the various sorts of difficulties and adverse influences to be serious, and more fully prepare measures for solving problems, we should reinforce confidence, take advantage of favorable conditions, turn crisis into opportunity, make sure that we fight SARS with one heart and one mind, step forward to meet difficulties and promote development, striving to win double victories in the fight against SARS and development of the economy.

By People's Daily Online

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