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|Monday, October 29, 2001, updated at 16:13(GMT+8)|
Enlarged Domestic Demand, Chief Countermove Stressed: AnalysisThere has been seen a flagging economy in various parts and countries throughout the world this year. Meanwhile, a cut growth of economy has been anticipated by policy makers in developed countries for terrorist "attacks September 11" mounted on the US, and as things now appear, a new economic situation has come to face people and their economy in today's world.
In face of such a new complicated ever-changing situation, "Expand domestic demand" put forward as a prime countermove to cope with worldwide economic flagging has all the more its fullest significance to push the development of the Chinese economy onto a high stage.
To strive for an expansion of domestic demand is a principal policy put forward by the CPC Central Committee. In the past three years, its implementation has practically helped China stave off various risks from the Asian economic crisis and, as was expected, has contributed as well to an upbeat of the Chinese economy in 2000. For a robust proactive financial monetary policy implemented along with an increased investment made and an expanded consumption market developed, irrespective of a decreased demand from the outside world, China still chalked an annual average of over 7 percent in its GNP growth. Practice fully testifies to the fact that sticking to the effort for an expansion of domestic demand, namely, turning challenge into opportunities and pressure into motive power has placed China in good stead to cope with all unexpected changes without and ensure a steady growth of the Chinese economy.
A fact to be noted in the third quarter of this year is that a slowdown has been seen in China's exports and a decrease in its foreign trade earnings. Increased economic losses and cut income the Chinese enterprises have also suffered. In the face of a sluggish world economy, many a varied measures have been adopted by China to strive for an enlarged amount of exports to be developed. In the meantime, supportive policies have been adopted by China to ensure domestic demand expanded and the Chinese economy well adapted to a flagging world economy.
For enlarged domestic demand a robust proactive financial monetary policy is inevitable and on this a large fund of as many as 150bn yuan of T-bonds have been earmarked. A wide cooperative effort has also been made by the country to ensure these funds be properly used; construction projects built with T-bonds completed and put into operation in time. New projects demanded during the 10th Five-year Plan period are to be launched for economic growth and an increased amount of investment to be used in various quarters and the country as a whole.
Investment doors have been demanded by various trades to be open to civilian (private) funds and these will no longer be laid idle but turned to their fullest account in China as a whole the coming year. All trade monopoly and local protectionism will be ruled out and no restrictions are to be imposed. Full outlets will be given to all funds both foreign and civilian. Opening up the capital market and making good of civilian funds are aimed to give a boost to the implementation of a proactive financial monetary policy in China.
A cleanup of consumption environment for an upgraded consumption structure is to help develop an enlarged consumption market in China. At present, China's urban and rural consumption is in a transitional stage from a 1000-yuan grade to a level of 10,000 yuan. But auto and housing prices remain high, many a varied consumption items involved, along with an ever changing consumption policy, potential demand still cannot be transformed into genuine consumption. A thorough cleanup of these and suchlike restrictions on consumption, with a purified consumption environment and new hot consumption spots developed will surely help a growth of the Chinese economy without doubt.
China has a population of 1.3 billion in hopes of a large potential market demand as of the largest to be developed in the world. As demanded by the country's 9th Five-year Plan, construction projects launched are to be built and put into operation at an accelerated speed, greater input is to be put into technological reform and people's life in city and country will be raised. Industrialization, urbanization and western China development will be launched on large scale and with a greater space provided. Though an unfavorable outside environment is faced, when things are properly handled and done in a down-to-earth manner, enlarged domestic demand will be turned into an inexhaustible motive force to fuel a sustained economic growth in China.
By People's Daily Online
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