China to increase demand in boosting economy

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 ◆ China to increase demand in boosting economy

China will continue its policy of expanding domestic demand to better develop its national economy in 2002, according to the three-day Central Economic Working Conference, which concluded Thursday.

The conference said that expanding domestic demand is a strategic policy that China will adhere to for the long term, and it is imperative to further understand this policy, enrich its content and improve its effectiveness.

The conference pointed out that domestic demand expansion should be integrated with strategic adjustment of economic structure, deepening of economic reform, increasing employment, improving the living standards of people and ensuring sustainable development.

Efforts should be made to further cultivate domestic demand and increase the income of both urban and rural residents, especially low-income earners, the conference said.

China will also continue its proactive fiscal policy, issue long-term State treasury bonds and make necessary investments to realize sustained and fast development of the national economy, expand employment and maintain social stability.

The conference also said the structure of fiscal expenditures should be optimized so that expenses for social security and fees-to-tax reform in rural areas are ensured.

Efforts are needed to further improve and stabilize the taxation system and strengthen taxation management, the conference said.

China will continue to pursue a steady monetary policy and reinforce the supporting role of finance in economic development.

More funds will be earmarked for technical innovation of enterprises, the development of small and medium-sized enterprises, especially non-State sci-tech enterprises, and the readjustment of the agricultural structure.

Readjustment of agricultural structure, deepening of rural reform and increasing farmers" income were stated as major goals for 2002.

The conference said that further change in agricultural and rural economic set-ups is an important way for improving agricultural efficiency and boosting farmers" incomes. The immediate development of quality and special farm produce and expansion of animal husbandry into a more profitable industry are imperative.

Top priority should be given to the quality, sanitation and safety of food products, and efforts should be made to establish quality standards for farm produce, a system for examining and testing farm produce and to develop organic and pollution-free food products.

The conference said agricultural industrialization can help revamp the structure of the sector and is a major issue in rural economic work.

More must be done to speed up the return of reclaimed farmland, as well as barren hills and land, to afforested areas.

The conference urged the nation to create more jobs to improve people"s living standards as well.

The meeting said that the country"s employment situation is of political importance as it is vital to stability, reform and opening up. Therefore committees of the Communist Party of China and governments at all levels should pay close attention to the employment situation and work to provide more jobs.

The meeting urged that the development of labour-intensive industries should be stepped up and the competitiveness of the State economy be improved. Various forms of ownership in economic development should also be encouraged.

It is important to make full use of small and medium-sized enterprises and the non-State economy to increase China"s employment rate, the meeting noted.

The conference also said the nation will continue to readjust its economic structure and concentrate on successfully upgrading technology in enterprises.

The speeding up of technical upgrading in existing enterprises and the improvement of technical standards of production will lay the groundwork to boost China"s international competitiveness. This will also spur investment demand and improve supply capacity.

It is necessary to use high technologies and other advanced techniques to upgrade an important group of industries and enterprises, and new economic powerhouses should be built up, said the conference.

Efforts should be made to accelerate selected and prioritized high-tech industrial development so that high-tech industrial chains with Chinese characteristics and competitive advantages will be formed as early as possible.

Also, education should be developed, and improvements made in housing, tourism, neighborhood services and modern distribution methods. Doing so will create an efficient service network for China"s economic development and will help meet and enlarge the consumption demand of rural and urban residents.

It is also imperative to carefully carry out a series of strategic plans and policies set by the central government for exploring the vast western region and to further guarantee harmonious regional economic development.

Reform of State-owned enterprises (SOEs) will, for the foreseeable future, remain the core of the overall economic restructuring plan, said the conference.
(China Daily News)