Chinese Economy to See a Bright Future: Vice Premier Says

BEIJING, August 19 (Xinhua) -- Chinese Vice-Premier Li Lanqing said here today that on the whole, the Chinese economy has maintained a good momentum of development this year.

While addressing the Third Malaysia-China Forum on recovery and cooperation after the financial crisis, Li said that "We are convinced that so long as we press ahead with the basic policy of reform and opening-up, the Chinese economy will have a bright future."

During the one-day gathering co-sponsored by the Asian Strategy and Leadership Institute of Malaysia and the China National Committee for Pacific Economic Cooperation, participants from governments and business communities discussed ways to increase Sino-Malaysian cooperation in financial, trade, scientific, technological and other areas.

Li said on the occasion that this year, in the final run-up to the new century, the two governments signed the Joint Statement on Framework for Future Bilateral Cooperation, which mapped out blueprint and charts the course for the future development of bilateral ties, adding that the course bilateral relationship has traversed in the past quarter of a century also shows that the growing trade and economic cooperation have become the main driving force of such a relationship.

He expressed the conviction that with the concerted efforts of the two governments and peoples, China-Malaysia ties will have greater vigor and vitality in the 21st century.

The Forum has made important contributions to promoting exchanges and cooperation between the Chinese and Malaysian business communities since its establishment more than four years ago.

Li also briefed the participants on measures China has been taking to boost its economy, saying that in order to maintain the momentum of sustainable, rapid and healthy economic growth, the Chinese government is stepping up macro management.

He said that it is imperative to continuously implement the pro- active fiscal policy and appropriately increase government direct investment.

It is imperative to give full play to the role of monetary policy and improve the financial supervision mechanism, and to make efforts to increase the income of medium- and low- income families in urban areas and that of farmers, and boost household consumption, Li said.

Li went on to say that it is essential to vigorously develop education as desired by consumers and required by the strategy of revitalizing the country through science and education, so as to make it a contributing factor to the national economy, adding that it is necessary to adopt effective measures and more preferential policies towards export-oriented industries.

Moreover, it is imperative to speed up the implementation of a new housing distribution system by which all relevant factors are calculated in and based on monetary terms and turn the housing sector into a new growth point, the Chinese vice-premier said.

He said that it is also important to continuously strengthen infrastructure, give priority to hi-tech industry, and promote the upgrading and optimization of the economic structure.

Judging by their present results, the above-mentioned policy measures have already played a positive role in promoting economic growth, Li said.

Malaysian Prime Minister Datuk Seri Mahathir bin Mohamad said on the occasion in a speech entitled "Malaysia and China Relations: Challenges and Opportunities in the 21st century" that both sides have maintained very good ties since the establishment of diplomatic relations 25 years ago, and cooperation in trade, investment, science, technology and education has been progressing.

He said that Sino-Malaysian mutually-beneficial ties have convinced both sides of the need and desirability to forge ahead for an even closer relationship into the new century, adding that China's actions for the well-being of east Asia in the Asian financial crisis has been most laudable, and the regional economies and the international community at large greatly appreciated China's decision -- not to devalue RMB yuan.

"Beijing's cooperation and high sense of responsibility has spared the region of a much worse consequence," the Malaysian prime minister said, adding that the price China has to pay to help east Asia is high, and Malaysian people truly appreciate China's stand.