China to step up efforts as economy stabilizes
By Wang Yanlin |
August 30, 2012, Thursday
|
Print Edition
Print Edition
China is to step up efforts to expand domestic demand, deepen economic restructuring and stabilize prices during the second half of the year, the director of the nation's top planning agency said yesterday.
Zhang Ping, director of the National Development Reform Commission, told the nation's top legislature: "China's economic growth is stabilizing although it is expanding at a slower pace."
The government's supportive policies are gaining traction while the real estate curbs have suppressed speculation, contributing to a relatively stable economic growth," Zhang said.
He said the deteriorating global financial crisis would continue to affect China's economic performance, and there may be increasing external uncertainties in the second half, together with many internal imbalances and difficulties that could put pressure on growth.
China would stick to the current restrictive policies in housing, he said, to secure current achievements and block a possible rebound in house prices.
"China will accelerate the construction of a long-term policy and macro-control mechanism for the property market," Zhang said.
China's gross domestic product expanded 7.8 percent from a year earlier in the first six months. It grew 7.6 percent in the second quarter, the slowest in three years and close to the government target of a minimum 7.5 percent gain for this year.
China's exports have become a particular drag on the economy. In July, exports edged up just 1 percent year on year, leading to weaker production and deepening worries about the future.
Last week, during an inspection tour in southern Guangdong Province, Premier Wen Jiabao said that the central government would accelerate export tax rebate reform and encourage firms to develop brands as a means to promote exports.
To support growth, China has launched a batch of supportive policies since early May.
The country has fast-tracked approval process for investment spending on key projects, lowered interest rates twice in the past two months, and enriched capital in the banking system through repurchase agreements.
Economists are expecting another cut in reserve requirement ratio to boost liquidity on the market.
Zhou Xiaochuan, governor of the People's Bank of China, said last week that cuts in reserve requirements and interest rates were still possible after cash injections to the banking system.
Zhang Ping, director of the National Development Reform Commission, told the nation's top legislature: "China's economic growth is stabilizing although it is expanding at a slower pace."
The government's supportive policies are gaining traction while the real estate curbs have suppressed speculation, contributing to a relatively stable economic growth," Zhang said.
He said the deteriorating global financial crisis would continue to affect China's economic performance, and there may be increasing external uncertainties in the second half, together with many internal imbalances and difficulties that could put pressure on growth.
China would stick to the current restrictive policies in housing, he said, to secure current achievements and block a possible rebound in house prices.
"China will accelerate the construction of a long-term policy and macro-control mechanism for the property market," Zhang said.
China's gross domestic product expanded 7.8 percent from a year earlier in the first six months. It grew 7.6 percent in the second quarter, the slowest in three years and close to the government target of a minimum 7.5 percent gain for this year.
China's exports have become a particular drag on the economy. In July, exports edged up just 1 percent year on year, leading to weaker production and deepening worries about the future.
Last week, during an inspection tour in southern Guangdong Province, Premier Wen Jiabao said that the central government would accelerate export tax rebate reform and encourage firms to develop brands as a means to promote exports.
To support growth, China has launched a batch of supportive policies since early May.
The country has fast-tracked approval process for investment spending on key projects, lowered interest rates twice in the past two months, and enriched capital in the banking system through repurchase agreements.
Economists are expecting another cut in reserve requirement ratio to boost liquidity on the market.
Zhou Xiaochuan, governor of the People's Bank of China, said last week that cuts in reserve requirements and interest rates were still possible after cash injections to the banking system.
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