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BIZCHINA / Biz Media Digest |
Macroeconomy: Efforts for sound economy continue(CRI English)
Updated: 2008-01-17 13:50 The Chinese government has enacted a series of measures to cool the economy in recent months, hoping to reverse the trend of rising liquidity. The measures include strict controls over new projects, especially those with the potential to damage the environment through heavy pollution and emissions. Land management in both urban and rural areas has been enhanced since the end of last year, as a way to cut back overheated investments. Analysts say these are part of the efforts to curb aggregate demand. Monetary policies have been continually readjusted since last October. China's central bank, the People's Bank of China, has increased interest rates and deposit reserve ratios several times to curb excessive cash flow. Finance expert Yi Xianrong said the tightened monetary policies demonstrate China's strengthening macroeconomic control. ''The central government recognized the heated situation. The tightened policies are expected to cool down the current economy, investment and even booming loans.'' To ease the rapidly climbing prices, related departments in China are making efforts to maintain domestic supplies. For example, food exports have been reduced by higher taxes and limited quotas. A Hangzhou vegetable seller surnamed Li said food prices have stabilized in recent months. ''Cabbages sell for 0.5 yuan (7 US cents) per kilogram. We've been selling cabbages for the same price for one month now. Last year at this time, we were selling cabbages for 1.2 yuan per kilogram.'' In addition, China's consumer watchdog organization has issued policies that prices of essential products, such as water, gas, heating and electricity, are forbidden to float. The same policies have been implemented in public services like transportation and education, as well. Meanwhile, combating illegal pricing actions is also high on the government's agenda. Regions across the country are called upon to pose strict punishments for price-jacking, manipulation, and other such behaviors.
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