On the executive conference of the State Council presided by Chinese Prime Minister Wen Jiabao on April 15, analysis on the economic situation of the first quarter and schemes on the future economic developments are being discussed.
Accordingly, the current economy has shown a positive signal and has performed better than expected, which indicates that the governmental economic stimulus plan in improving the domestic demand and promoting a steady and fast development of the economy has played an important role. Up till now, the domestic investments have been accelerated, consumption being increasing and domestic demand being steadily recovered. In addition, the industrial production has seen a gradual stabilization, while the agricultural situation has gotten better in general.
Meanwhile, the industrial structural adjustment has already been propelled step by step, and the regional developments are followed in orders. In the financial sector, the financial market is running steadily, and the banking system has regained a fluent liquidity. As far as the civilians are concerned, the resident income has increased, and the town employment situation has been solved to a large extent. The market is now restoring confidence.
However, there lacks a strong brace for Chinese economy to achieve a real recovery, because China is to face more severe challenges from inner and outer. On one hand, the demand in other markets is still weakening, leading to further decreases in Chinese exports. On the other hand, the industrial production capacity is relatively excessive, while economic efficiency is sliding.
The conference has given top priority to the followings:
1. Carry out the policies on investment expansion
In the meantime of carrying emergently on the first two batches of construction investments, China should also impel the third batch of governmental investments. Meanwhile, the issuing of regional government bonds must be in orders, while the enterprises' bonds issuing scales should be enlarged. Furthermore, China should do the revision work on the approval catalogue of governmental investments as soon as possible, and encourage more investments from private sectors. In addition, the whole-course supervision and examination work should be carried out on the governmental investments. And policies on how to utilize and expand the foreign investments should also be studied and then promulgated.
2. Expand the domestic consumption especially the residential consumptions.
3. Stabilize exports and imports. Restrictions on exports should be moved, while more assistance should be given to the high-tech productions and labor-intensive productions by using various channels such as foreign trade development funds and credit lines.