China's PM says economy is fine, but has pitfalls

PREMIER Wen Jiabao warned on Wednesday that problems still existed in the operation of China's economy despite its overall health.  

He singled out areas of concern including an overabundance of fixed assets investment, an imbalanced investment structure and tight supply of coal, electricity and oil, and transportation capability.  

“We are still challenged by the difficulty of macro economic control, which cannot be relaxed,” said Wen on Wednesday, addressing high-ranking officials at an executive meeting of the State Council, China's Cabinet.  

The meeting was held to report achievements of efforts to cool down its heated economy and plan the government's work for the second half of this year.  

Wen said the government would continue to focus its efforts in agriculture, reiterating plans to strengthen grain production capacity by urging local governments to conscientiously subsidise grain producers.  

At the beginning of this year, the government decided to spend a record 150bil yuan (RM68.8bil) in a move to encourage farmers to increase grain production, improve rural infrastructure and ensure food security. 

More efforts should be made to regulate money supply, Wen said. But financial support should not end for enterprises that were internationally competitive, environmentally friendly and complied with industrial polices.  

Wen said the supply of coal, electricity and oil, and transportation capabilities were still under strain judging from demand.  

He also stressed protection of arable land and said the government should play a larger role in supplying land, which provides major leverage in managing macro economic performance.  

He also said the government should try their best to create more jobs and lower the jobless rate below the targeted indicator of 4.7% by the end of this year. – China Daily  

Asia News Network

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