China's GDP can grow 7% - planner
( 2002-03-07 09:58) (1)
China aims to maintain a strong economic growth of 7 per cent this year amid a slow global economic recovery, the country's top economic planner said on Wednesday.
The anticipated GDP (gross domestic product) growth rate is the same as last year's target, but it is slightly smaller than the actual 7.3 per cent last year.
Zeng Peiyan, minister of the State Development Planning Commission, said the growth objective must be achieved, though problems lay ahead, including possible deflation, growing unemployment and rural poverty.
Addressing the Fifth Session of the Ninth National People's Congress (NPC), Zeng urged the nation to "wisely use" the US$18-billion treasury bonds this year for infrastructure construction, in a bid to increase sluggish domestic demand.
The reinforced public spending will spur economic growth, which has been dragged down by shrinking exports, he said.
Last year, China's foreign trade volume missed its growth target of 8 per cent by 0.5 per cent due to a global economic slump.
"The bonds are necessary to fight against deflation and keep sustainable economic growth," said Zeng to over 2,800 deputies.
Zeng said the government "will strive hard to increase its foreign trade volume this year." But he did not give a specific growth rate, in contrast to the ambitious 8 per cent growth target declared at the NPC session a year ago.
In adherence to Premier Zhu Rongji's stern demand for increasing farmers' incomes in his annual working report on Tuesday, Zeng said the government will go all out to boost farmers' incomes by 4 per cent this year, again without giving specific figures.
The government will also spend 10.6 billion yuan (US$1.28 billion) to alleviate poverty in rural areas this year.
Zeng said the government plans to create 8 million more jobs this year, allowing more non-State enterprises to hire labourers.
But even so, the registered urban unemployment rate could hit 4.5 per cent, 0.9 percentage point higher than last year, Zeng warned.
Analysts said the jobless rate could grow as China's entry to the World Trade Organization (WTO) may sweep many domestic low-efficient companies out of the market and leave redundant workers without jobs.
To cope with the challenge with the WTO entry, Zeng said the government will push through reforms of monopoly sectors including the telecommunications, power and aviation industries, to sharpen competitiveness.
"But we will try to maintain the stability of the workforce, and stay alert to the losses of State-owned assets during the reforms," Zeng said.
He also encouraged domestic companies to use their rights as WTO members to actively expand abroad.
"We should continue to diversify our export markets, tapping emerging markets like Russia, Eastern Europe and Latin America," Zeng said.
On foreign investment, Zeng pledged to gradually open the service industry, and further improve the investment environment for overseas companies.
He said foreign investment is especially encouraged in bioagriculture, the high-tech industry, infrastructure construction, developing western areas and reforming State-owned enterprises.
Zeng also said the government will continue to keep the exchange rate stable and reinforce monetary supervision.
"We shall try to lower the non-performing asset rate and improve the ability to fend off financial risk," said Zeng.
As this year marks the fourth year of China's ambitious western region development campaign, Zeng said large-scale development in China's west will be vigorously promoted.
"We will continue to improve infrastructure and ecological conditions in the western region, develop science, technology and education, and utilize its rich resources," he said.
China decided in 1999 to develop its impoverished western regions, which includes 12 provinces and regions and Chongqing Municipality, so that the areas can catch up with its eastern counterparts.
The region spans half the nation's territory and one-fourth of its population, but GDP per capita only accounts for 60 per cent of the nation's average.
Zeng said the nation will strive to ensure that every county has asphalt roads, every township has an electricity supply, and every village has radio and television coverage.
Efforts to speed development of the central region will be supported with government investment in capital construction and technological upgrade projects, Zeng added.
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