China's economy has survived the most difficult period since the Asian financial crisis and is heading upward, as shown through every economic indicator, said a senior Chinese official.

Qiu Xiaohua, deputy director of the State Statistics Bureau, told the ongoing Overseas Chinese Worldwide 2000 Conference that the "Chinese economy has shown a major turn for the better."

China's economy registered a growth rate of 8.2 percent during the first half of this year, and in the first eight months, the industrial output value increased by 11.1 percent, sales volume by 9.9 percent, export volume by 34.6, and financial revenues by 10.9 percent, according to Qiu.

The performance of industrial enterprises has improved and state-owned enterprises (SOE) have reported a marginal increase in profit, which signaled that "China can accomplish its target of getting SOEs out of red within three years," he said.

Qiu attributed the favorable signs to correct macro-adjustment policies as well as the improvement in global economy.

During the past five years, China has maintained a growth rate of no less than eight percent, and the framework for a socialist market economy has been initially established, he said.

Qiu believed that the Chinese economy will be able to maintain sustained, rapid, healthy development in the new century so long as China handles some key issues properly like the relationship between investment and consumption, and the relationship between the government and the market.

(People's Daily)