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China stresses economic restructuring in promoting growth

(Xinhua)
Updated: 2009-08-25 21:24

BEIJING: China needs to stress economic restructuring while aiming at higher economic growth, according to a report submitted Tuesday to China's law makers.

The report was delivered by Zhang Ping, Minister of the National Development and Reform Commission, the top economic planning agency, to the 10th session of the Standing Committee of the 11th National People's Congress (NPC), the top legislature.

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"The country should continue to promote economic restructuring and change its growth mode while it strives to maintain a high growth rate," Zhang said in the report.

In the current economic situation, policy support was necessary to encourage firms to innovate, adjust their structure, and strengthen management, said Zhang.

"An acceleration in the transition of the country's growth mode and structural readjustment is directly linked to the country's ability to stand out amid increasingly fierce global competition, achieve sustainable development, and maintain social stability in the long run," said Zhang.

China would accelerate reforms of income distribution, pricing of resource products, fiscal and tax systems.

The government would also improve the evaluation of officials by putting more weight on performance in improving people's living standards and ensuring the quality of economic growth.

Zhang said in the report that the government would continue industrial restructuring and stimulus plans, and urge firms to innovate in key technologies, with a pledge of financial support.

The government would continue to conserve energy and curb emissions and pollutants, said Zhang.

It would focus on narrowing the income gap between urban and rural residents and between western and eastern regions in a bid to expand domestic consumption, he said.

Consumer spending contributed 53.4 percent of the country's gross domestic product in the first half, up from 45.7 percent a year before, as the government shifted to expand domestic consumption to fuel the growth, said Zhang.

In a separate report delivered at the same session Tuesday, Zhang said China's economic recovery was still unstable, not consolidated and unbalanced despite "positive changes" in the economy, echoing similar comments made by Premier Wen Jiabao a day earlier.

Zhang said falling exports had delt a heavy blow to the national economy, and external demand remained weak with the world economy still in recession and expecting a slow recovery.

China's exports seemed unlikely to repeat the fast and sustainable growth they had before the crisis, with rising protectionism and United States and European countries trying to correct over-consumption, Zhang said.

Zhang said the government would maintain its macro economic policies to further boost domestic demand, promote industrial restructuring and improve social security.