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Hu urges APEC to promote sustained economic growth

(Xinhua)
Updated: 2008-11-22 09:21

"We will unswervingly pursue reform, improve the socialist market economy and build systems and institutions that are dynamic, efficient, more open and conducive to scientific development," Hu said.

China will follow a new path of industrialization with Chinese characteristics and transform the mode of economic growth, he said.

Instead of relying heavily on higher consumption of resources, China will achieve development by making scientific and technological progress, improving the quality of the workforce and developing innovative management, he added.

Since the beginning of this year, China has taken robust measures to address the complex changes in the international economic environment and the severe challenges of major natural disasters.

"We have strengthened macroeconomic regulation in a timely way," Hu said, adding that "the fundamentals of the Chinese economy have not changed."

"The steady and relatively faster economic development in China is in itself a major contribution to upholding international financial stability and promoting world economic development," he said.

Between January and September this year, China's gross domestic product grew by 9.9 percent and the three major demands of investment, consumption and export all grew by over 20 percent.

However, since September, with the spread and development of the financial crisis, China's economic development have run into more obvious difficulties, Hu said.

The growth rate of China's export has begun to decline and industrial production and corporate profits have been adversely affected to varying degrees, he added.

"In view of this and in order to boost economic development, the Chinese government has strengthened macroeconomic regulation in a timely way and decided to follow a proactive fiscal policy and a moderately easy monetary policy," the president said.

China has lowered the required reserve ratio, cut the deposit and lending rates and eased the corporate tax burdens, he added.

China has recently adopted even stronger measures to generate greater domestic demand, Hu said.

He said the central government has decided to invest an additional 100 billion yuan (US$14.6 billion) this year to accelerate projects related to people's livelihood, infrastructure, the eco-environment and post-disaster reconstruction.

This is expected to generate a total of 400 billion yuan (US$58.4 billion) of investment nationwide, he noted, adding that between the fourth quarter this year and the end of 2010, investment in these projects alone will reach nearly 4 trillion yuan (US$584 billion).

Implementation of these measures will give a strong impetus to China's economic development, Hu said.

Hu arrived in Lima Wednesday for a state visit to Peru and for the Economic Leaders' Informal Meeting of the APEC forum slated for Nov. 22-23.

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