"Prices are still faced with a new upward pressure, while the total amount of policy, implemented next year will continue to be sound and tight macroeconomic policy; from structural policy, the investment growth rate decline, to expand the consumer as the main body to stimulate domestic demand growth next year. "This is the deputy director of the State Council Development Research Center, Xie yesterday by the State Council Development Research Center of Market Economy Research Institute hosted the third quarter of 2004 seminar on the Chinese market situation analysis described in point of view.
Xie believes that some unhealthy economic operation of short-term factors are weakening, the current economy as a whole move toward the macro-control targets: economic growth has gradually come down, high stabilization of the situation, no major fluctuations; price increase is basically control within the parameters established at the beginning, this round of price increases caused by the pressures; foreign trade continued substantial growth, attract foreign investment in a significant increase; employment and reemployment of rapid growth, residents have more income, to further improve people's lives; stable financial operations, business efficiency is better. He said the effect of tightening macro-control more obvious, our economy back toward the normal economic track.
In his view, the current economic operation of the main contradiction facing mainly the following three aspects.
First, inflation is facing new pressure. However, the pressure will not lead to inflation came from food, agricultural products, but mainly from the upward pressure on prices of production. Second, the scale of fixed asset investment is still relatively large, there is still a further expansion of investment possibilities. Although recent interest rate increases, but the land approval thawing may result in some new projects, to curb blind expansion of investment in a certain pressure. If the investment continues to expand, it will bring some degree of difficulty of control. Third, institutional contradictions are still outstanding. Such as interest rate and exchange rate policies there are some contradictions and difficulties with each other; financial existence of some hidden danger; small business financing problems, the investment system, financial system, and so some of the institutional obstacles have not yet eliminated. He believes that although there are other issues Meidianyouyun tension, but these are not fundamental. He expects the situation to the power shortage will ease in the second half of 2005, but the transport situation will depend on kerosene economic growth.
When talking about future policy direction, Xie that from the total amount of policy, is still tight sound macroeconomic policies, continue to control the scale of investment in fixed assets, to prevent rebound of investment; and from the structural policy, decline in investment growth will seek to promote economic growth after a new factor, which requires the consumer to expand domestic demand as the main body; in the regulation of the way, will be greater use of economic instruments, a corresponding reduction in administrative means, the use of small piece more flexible regulatory approach, to weaken the market is expected to ill effects on the economy; reform will further deepen and gradually eliminate the institutional obstacles for economic development.