A latest government report envisages an increase of over nine percent in the first half of 2004 over the same period last year, a pretty rosy picture for the Chinese economy.

According to the report on the country's foreign trade released by the Ministry of Commerce lately, the nation's economic growth rate was 9.7 percent in the first quarter of this year, and the overall growth rate for the first half year would reach over nine percent.

The report predicts China's economic growth rate in the second half of 2004 will slightly be lower as compared with the first half year, but will remain its relatively fast growth rate.

The report further noted the Chinese economy is amid its upturn period and that the rapid economic development in 2003 has paved the way for 2004. China's economy rose by 9.6 percent in the third quarter and by 9.9 percent in the fourth quarter last year.

Nevertheless, the report cautions that the sector of energy and raw materials which suffered relatively short supplies and their ensuing rising prices would further curtail growth in investment and export. And it acknowledged that substantial efforts and prompt measures taken by the government to address overheating concerns in fixed investment in some industrial sectors have been proved effective.

The trend of rampant redundant investment is expected to be brought under control while enterprises would find it hard to finance and seek land for business purpose, according to the report.

(Xinhua News Agency May 1, 2004)