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NBS official refutes charges of unreliable GDP figure

(China Daily)
Updated: 2009-07-23 11:50

China Daily: Mr. Scissors also talked about China's reluctance to adjust its economy. He said that "the PRC is trying to drag itself and the rest of the world back along the trail that led to the current economic crisis." What is your opinion about this?

NSB: We are always welcome useful advice, but Mr. Scissors' conclusion seems to be "too hasty".

In order to effectively cope with the impact of the international financial crisis and to maintain stable and rapid economic growth, the Chinese government has developed a quite comprehensive scheme that includes four major aspects. The first is to expand domestic demand, increase government investment in large-scale projects and implement a structural tax reduction. The second is to invigorate industries by implementing the restructuring and revitalization plan in ten major industries closely related to the national interest and people's livelihoods. The third is to strengthen and improve our capacity for independent innovation to provide support for economic development. The fourth is to greatly enhance social welfare and resolve people's concerns regarding healthcare, education and other issues. The package adopted by the Chinese government is neither a pure increase in investment, nor a return to the original economic growth model. Instead, it meets both short-term and long-term interests.

Economic performance in the first half of the year shows that the recovery is taking place, the economic structure is being optimized and the model of economic growth is changing. As for the industrial structure, the proportion of the tertiary industry is being enhanced while the proportion of the secondary industry, especially manufacturing, has dropped. Compared with the first half of 2008, the percentage of added value of the tertiary industry in GDP growth has increased by 1.5 percentage points from 39.8 percent to 41.3 percent year-on-year while that of manufacturing has declined by 1.8 percentage points from 46.5 to 44.3 year-on-year. The added value of six high-energy-consuming industries including iron and steel, nonferrous metals, and chemicals has increased by 4.2 percent year-on-year but the growth rate has declined 10.3 percent. As for the demand structure, overseas demand keeps weakening while domestic demand is becoming a more important factor in driving economic growth. In the first half of this year, exports dropped 21.8 percent while total nation fixed assets investment and the total retail sales of social consumer goods increased by 33.5 percent and 15 percent respectively. Construction funds are mainly directed toward housing projects for low-income residents, livelihood projects in rural areas, infrastructure, social undertakings, environmental protection, independent innovation and structural adjustment as well as post-quake restoration and reconstruction. Investment in infrastructure and the people's livelihood has obviously increased. As for the regional structure, economic growth in inland areas is generally better than that in coastal regions and the coordination of regional development is improving. As for the distribution relations between the nation, enterprises and individuals, resident personal income keeps rapid growth while financial income and corporate profits keep dropping.

In conclusion, the measures to expand domestic demand and maintain stable and rapid economic growth adopted by the Chinese government are a emergency move to maintain growth, promote people's livelihoods and maintain stability, as well as a long-term strategy to ensure the Chinese economy grows in a logical and harmonious way.

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