The Chinese economy remains in good shape despite some problems
that appeared as the economy soared in the first half of this year,
top Chinese officials said.
China's gross domestic product (GDP) grew 11.9 percent in the
second quarter and 11.5 percent in the first six months of
2007.
But Ma Kai, minister of the National Development and Reform
Commission, said that more efforts have been made this year to
ensure that the economy grows in a sound and stable manner.
The commission announced on Friday that the central government
had contributed a further 10 billion yuan (US$1.32 billion) to the
drive to promote energy saving and cut pollutant emissions. It also
increased investment in agriculture and stabilizing pork
prices.
The state has also taken a series of measures to rein in
investment, slow down exports, increase imports and reduce
liquidity, which has pushed up the prices of assets.
As a result, positive signs have emerged that point to more
balanced economic development.
The economic structure, which has leant towards industry and
investment, has improved as the service sector grows and
consumption rises.
In addition, the competitiveness of Chinese firms has been
improved as a result of technological upgrading.
The profit-making capacity of Chinese enterprises is also on the
rise. Major industrial enterprises raked in a total of 900 billion
yuan (US$118.9 billion) in profit in the first five months of this
year, up 42.1 percent year-on-year.
Chinese farmers reaped a hard-won harvest this summer despite
severe natural disasters, such as heavy rainfalls.
Energy efficiency is also improving, while energy consumption
per unit of GDP is continuing to fall, as is the emission of
pollutants.
Xie Fuzhan, director of the National Bureau of Statistics, said
the economy is generally in good shape, as its quality is improving
and people benefit more from economic growth.
The economic growth rate should not be the only factor for
judging the soundness of the economy, he said. A comprehensive
method should be adopted that looks at the economy from such
perspectives as improvements in employment, economic quality,
structure and people's living standards, added Xie.
Although consumer prices are rising strongly, they have been
driven mainly by rising food prices, which are also a victim of
international grain price rises.
Analysts said that as domestic supply is growing rapidly, food
prices would not continue to rise.
(China Daily July 28, 2007)
