The role of government is to promote sound economic development
while the market allocates resources, said experts at the China
Development Forum yesterday in Beijing.
China will achieve
its modernization in an environment characterized by the trend
of economic globalization, Vice-Premier Wen Jiabao told delegates
during the forum's opening ceremony.
The basic role
of the market to allocate resources should be promoted, but
it must remain under the macro-control of the State, Wen said.
"Economic
globalization does not mean a lessening of the responsibilities
and functions of government," Wen said.
In the process
of participating in economic globalization, the Chinese Government
will further improve its functions, Wen said.
Attending the two-day
forum, which ends today, are more than 100 participants, including
officials from Chinese government departments, leaders of
financial circles and other big companies, chairmen and CEOs
of some of the world's top 500 businesses, and representatives
from related international organizations and non-governmental
organizations, and Chinese and foreign scholars.
It aims to discuss
the role of government in the rapidly changing economy.
Chen Qingtai, deputy
director of the center, said China is faced with many challenges
as a result of globalization, the most critical of which is
improving managerial and administrative structures of government.
At yesterday's
meeting, leaders of many government departments outlined how
their departments can play an improved role in China's economic
development.
Xiang Huaicheng,
minister of finance, reiterated the government will pursue
pro-active fiscal policies to stimulate domestic consumption.
Yang Jingyu, director
of the Legislative Affairs Office under the State Council,
said China will change laws which are not compatible with
the regulations of the World Trade Organization.
Dai Xianglong,
governor of the People's Bank of China, said the country will
speed up reforms in the banking sector and capital market.
Xie Zhenhua, minister
of the State Environmental Protection Administration, said
the country will spend more than 700 billion yuan (US$84.5
billion) to improve the environment during the 10th Five-Year
Plan period (2001-05).
Delegates also
offered their views on China's development policies.
Lawrence Lau, a
professor from Stanford University, expressed his support
for the government's pro-active fiscal policies.
He said the Chinese
Government can afford the debt, and it will not affect inflation.
Fred Bergstan,
director of the Institute for International Economics, suggested
that China increase the flexibility of the exchange rate.
Nicholas R. Lardy,
senior fellow of the Brookings Institution, said more foreign
companies should be introduced to China's financial market
and the government should encourage companies to issue their
own bonds.
(China Daily 03/26/2001)
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