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Wen addresses press conference (full text)
(China Daily)
Updated: 2005-03-15 02:11

Xinhua: Last year, you said macro-regulation was a new and severe task for the government. It was no easier a task than fighting against SARS. Now that a year has passed could you comment on last year's work with regard to macro regulation? Could you speak to new features and characteristics of macro regulation for this year? Will you intensify the policy measures?

Wen: In the past couple of years, we have been facing a battle of contact in terms of economic development. To fight this battle, we have combined a series of policies. We can say now these policy measurers have achieved remarkable results.

Premier Wen Jiabao gestures at yesterday's news conference held after the closing of the annual NPC session. [newsphoto]

We have been successful in avoiding major ups and downs in the economy, preventing excessive price hikes, keeping prices at a stable level and maintaining steady and fairly rapid economic growth. Now we must not slacken in our efforts in the slightest way. The situation we are facing now is like going upstream. If we don't forge ahead, we will be left lagging behind. Let me put the problems we face in proper prospective.

First, the foundation for macro regulation needs to be consolidated further. We face considerable difficulty in further raising grain output and increasing farmers' income. In particular, because of price rises in capital goods, it is more difficult for us to achieve these goals in terms of increasing grain output and farmers' incomes. Moreover, investment growth in fixed assets may pick up again. Coal, electricity, oil and transportation are in short supply. In the first two months of this year, power generation has increased by 12 per cent. Yet 25 provinces, autonomous regions and municipalities experienced blackouts. In the economy, the supply chain is overstretched.

Second, we are facing a series of dilemmas in our economy. For example, a slow economic growth rate won't do, because it would make it more difficult for us to create jobs, increase revenue, and engage in necessary undertakings for society. Yet too fast economic growth rate won't do either, because it may make the economy to stretched out for a long time in an unsustainable situation.

Third, the problems we face in China's economy can all boil down to structural problems, growth patterns and institutional problems. All these deep-rooted and underlying problems will take time to be addressed. In a word, the top priority for the government is to further strengthen and improve macro regulative policy measures in order to sustain a steady and fairly rapid economic growth rate.

If a journey is 100 miles, travelling 90 is half of it. We must not stop and we must not waste our previous efforts. In the meantime, we must also take special attention to differentiated treatment for different situations. We must take both administrative and economic means to achieve macro regulative objectives.

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