NPC Deputies and CPPCC Members Discuss China's 1998 Economic Development 　　This report is written by Our Staff Reporters He Jiazheng and Tian Junrong. The following are excerpts of the report: In 1998, the year of the Tiger, the Asian financial crisis and the worst flood disaster brought great pressure on China's economic development. The Party Central Committee and the State Council led the millions of people in the effort for the prosperity of the country and finally achieved a 7.8 percent economic growth rate. 　　In 1998, the 20-year history of reform and opening up indicated that China's development was in the crucial period. However, two big storms arose in the year. The first was the Asian financial crisis. 　　Consumption, investment and export are three factors boosting economic growth. In mid-July, the Party Central Committee and the State Council made the following resolute decision: Intensify investment effort, raise the growth rate of fixed asset investment of the whole society from 10 percent to 15 percent; the central finance issued 100 billion yuan worth of national bonds, and increased 100 billion yuan of bank loans, concentrated efforts were made to invest in infrastructure construction. 　　What is worth mentioning here is that China has kept the Renminbi from devaluation. Renminbi asset has become one of the currency assets with the least risk in the world. The stability of the Renminbi has avoided still greater impact on the world economic system, the Chinese have again made moral contributions to the tendency to stability and revival of the Asian and world economy. 　　Just when China was waging bitter struggles against the Asian financial crisis, the second storm-the devastating floods came furiously. Deputies and members pointed out that the great anti-flood spirit established in the decisive battle against floods has become a huge pillar supporting China's economic development; the deficiencies of materials needed for post-disaster reconstruction, the expansion of investment in water conservancy and other factors have, in fact, quietly motivated China's economic growth. 　　The Party Central Committee and the State Council have repeatedly admonished that expansion of investment must be based on the optimization of the economic structure, refrain from carrying out duplicated construction and ordinary processing projects, so as to avoid overheated economy and the convergence of financial risks. Marked results have been achieved in this regard. 　　In line with the decision of the Party Central Committee and the State Council, the active financial policy and flexible currency policy were coordinated. The central bank reduced interest rates three times in one year, the highest frequency ever since the founding of the People's Republic. 　　The Party Central Committee and the State Council have reiterated that expanding domestic needs is not tantamount to giving up export. Success should be achieved in export by diversifying the market and optimizing the mix of commodities. 　　Last year in China, from the shore of the East China Sea to the northsouth of Tianshan Mountains, people of all nationalities, with iron will and rock-firm determination, were working with one heart and one mind to maintain economic growth. Fujian Province and Xinjiang Uygur Autonomous Region are cited as example to show how they have developed their economies by overcoming the impact of financial crisis and adopting ingenious measures. Economicnews 1999-02-26 Page1 Full Story in Chinese