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China Sets Plan for Gold Industry
The target for China's gold production has been set at 175 tons for 2001, according to an official from the State Economic and Trade Commission (SETC).
The gold industry will witness an eight percent growth in output-value added next year, predicted Wang Dexue, director-general of the Gold Administration under the SETC.
To meet the target, the industry should deepen reform and strive to improve economic efficiency, Monday's Economic Daily quoted Wang as saying.
The industry should be upgraded and advanced technology should be used, he added.
Wang also called for the rapid development of the non-gold business and a focus on geological research.
According to Wang, in 2001, the industry will register a profit of 1.2 billion yuan and nearly all large and medium-sized state companies in the industry will be lifted out of the red.
Reform Urged
China's gold market needs urgent deregulation if the business is to keep pace with advances in the country's overall market economy drive, according to industry experts.
Gold market deregulation would mean a resumption of the precious metal's function as a common commodity and investment tool, Liu Shijin, director of the Industrial Economic Research Department of the State Council-affiliated Development Research Center said.
Chinese people are still forbidden to buy, sell and hold gold bars to save or for investment.
Deregulation would help gold producers and dealers analyze market trends, fine tune prices and reduce risks, Liu said.
Deregulation would also significantly stimulate demand for gold in China, experts said.
"Deregulation is expected to increase the demand from current levels of around 200 tons to 500 to 600 tons annually in a few years," Kerr Cruikshanks, corporate director of the World Gold Council (International Marketing), was quoted as saying.
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