NDRC: China's fixed assets growth may lead to overheating
(Xinhua)
Updated: 2006-08-03 09:20
BEIJING, (Xinhua) -- A report from China's economic watchdog has warned that
fixed assets continue to lead galloping investment growth into overheating.
The National Development and Reform Commission (NDRC) said overall fixed assets
investment during the first half grew 29.8 precent to 4.24 trillion yuan (530
billion US dollars), 4.4 perentage points higher than the same period of last
year.
Meanwhile, nearly 100,000 new construction projects were launched, 18,000
more than the first half of last year.
Some industries showed signs of overheating. Investment in textiles surged by
40.6 percent and automobiles by 44.5 percent in the first half, accelerating
from the first quarter.
Some projects deviated from the state's industry plan, and repeated
construction remained serious, the report said.
The problems were attributed to local governments' blind pursuit of rapid
economic development, excessively driven by growth in fixed assets investment,
the report said.
Rampant illegal land use exacerbated the problem.
The report suggested efforts to curb the soaring fixed assets
investment, including stricter controls on the number of new projects, more stringent
land management, tighter bank lending, and a more efficient investment
structure.
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