RSSNewsletterSiteMapFeedback

Home · Weather · Forum · Learning Chinese · Jobs · Shopping
Search This Site
China | International | Business | Government | Environment | Olympics/Sports | Travel/Living in China | Culture/Entertainment | Books & Magazines | Health
Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Report advises linkage of income with CPI
Adjust font size:

China should set up a system that will tie people's income with the rise in the consumer price index, the State Information Center suggests in a report published yesterday.

 

The research unit under the National Development and Reform Commission also said that China should improve its innovative ability and reduce energy consumption to combat risks of a sudden slowdown in economic development. It also said that other measures to control more investments should also be considered.

 

"It is a challenge for China to contain growing inflation next year due to rising prices of foodstuff and farm produce in the global market. It should set up a system to connect people's income and consumer prices to ease the pressure over people's livelihood," the report said.

 

In November, China's consumer price index, the main gauge of inflation, climbed to an 11-year-high of 6.9 percent, pushing the cumulative rise in the first 11 months to 4.6 percent, up 3.3 percentage points from the same period last year.

 

The forecast for next year's consumer prices was divided, with the central bank's research bureau projecting 4.5 percent while Deutsche Bank predicted a 3.8-percent growth.

 

But both institutions forecast a retreat from this year's surge following the imposition of tighter credit control policies.

 

"The economy will observe another year of accelerated growth but the pace will slow due to the government's strong determination to cool economic development," said the report.

 

"Also, China's property market and stock market have seen risks accumulated from rapid advances (in prices). They might experience a relatively heavy correction next year, which poses a big challenge to the nation's macroeconomic control."

 

The subprime turmoil in the United States may spread from the finance sector to the wider economy at large, the report said. It might lead to a cut in China's exports and leave domestic factories idle.

 

To cope with the challenges, China should boost innovation and cut energy use to sustain economic development.

 

(Shanghai Daily December 29, 2007)

Tools: Save | Print | E-mail | Most Read

Comment
Username   Password   Anonymous
 
China Archives
Related >>
- Gov't to speed up salary rises
Most Viewed >>
-China set to hit the brakes on rising yuan
-Power to resume shortly in worst-hit area by snow
-Online operators are on top of the game
-Macao's gaming market expands further
-Insurance firms set to stump up billions

May 15-17, Shanghai Women's Forum Asia
Dec. 12-13 Beijing China-US Strategic Economic Dialogue
Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
SiteMap | About Us | RSS | Newsletter | Feedback

Copyright © China.org.cn. All Rights Reserved E-mail: webmaster@china.org.cn Tel: 86-10-88828000 京ICP证 040089号