The National Development and Reform Commission (NDRC) began a
two-day discussion on Wednesday to draft next year's targets for
national economic and social development.
The NDRC -- China's powerful cabinet-level economic policymaking
body -- came up with suggested indicators for economic growth,
employment, consumer prices and grain production. It declined to
reveal specific targets, which will be decided at the annual
session of the National
People's Congress (NPC) in March.
Vice Premier Zeng Peiyan has directed the NDRC to make
sustainable economic development and resource utilization, as well
as environmental protection, key considerations in setting policies
for the coming year.
NDRC spokesman Cao Yushu said earlier this week that the economy
is expected to continue growing rapidly next year, although the
rate should decline moderately from this year's.
Economists believe the central government may set a GDP growth
target lower than 8 percent for next year to encourage local
governments and investors to focus on efficiency and profit rather
than scale of investment.
The situation bears similarities to last year's. In December
2003, the NDRC established a target of 7 percent for this year, a
significant drop from 2003's 9.1 percent. However, China's GDP
still climbed 9.5 percent in the first three quarters of the
year.
A low target is intended to curb the excessive growth in some
sectors that is putting a strain on transportation and power
supplies, driving up the prices of raw materials and damaging
industries nationwide.
Senior economist Liu Guoguang, of the Chinese Academy of Social
Sciences, believes that China needs a relatively long period of
strong economic development to solve such problems as poverty,
education and an underdeveloped social security system.
"So far, our economy as a whole is not overheated, but
investment needs a soft landing," said Liu.
In drafting its policies, the NDRC is keeping a sharp focus on
resource conservation. The country's lightning-speed
industrialization and attendant gobbling of resources has created a
number of shortages and bottlenecks.
(China Daily December 9, 2004)
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