Wen stresses inflation control, policy fine-tuning

 
China.org.cn, October 26, 2011

Keeping consumer prices stable remains China's top priority and policymakers should fine-tune policy in a timely manner on the basis of economic trends, premier Wen Jiabao said Tuesday.

Wen made a two-day inspection tour of the Binhai New Area in northern port city of Tianjin. He made the remarks as he held talks with leading officials from Tianjin, Inner Mongolia Autonomous Region and the provinces of Jiangsu and Shandong.

He said policymakers should be sensitive to signs of new problems and make decisive moves accordingly.

For the duration of this year, the government should consolidate the momentum of China's economic development and focus on outstanding problems while attaching more importance to improving people's livelihood, Wen said.

The government will maintain reasonable growth in bank lending and boost structural tax reductions, Wen said, adding that more financial support should be given to small and medium-sized enterprises and projects that improve people's well-being.

The government should also work to ensure adequate food supplies, improve the country's distribution system and strengthen price regulations in order to combat inflation, Wen said.

He also said the country should maintain reasonable credit growth, optimize financing structure and improve levels of financing. It's important to synergize credit policies with industrial policies, ensure funding for key investment projects and support real economy.

China's economic growth slowed in the third quarter to a lower than expected 9.1 percent amid government efforts to prevent overheating and rebalance the economy.

The country's consumer price index (CPI), a main gauge of inflation, eased to 6.1 percent in September from 6.2 percent in August and a 37-month high of 6.5 percent in July. The government's full-year target is around 4 percent for the year.

During his inspection, Wen also visited high-tech enterprises and held talks with entrepreneurs in emerging industries to learn about their problems and difficulties in acquiring bank loans and supportive policies.

More effort should be put into developing the real economy, especially strategic emerging industries, to reduce the impact of the continuing global economic crisis, Wen said.

In facing a crisis, a country will only survive with a well-developed real economy led by innovation and high-tech industries, he said.

Local governments should give their full support to high-tech enterprises and back up their research, while commercial banks should provide more funding to small and innovative firms, Wen added.

(Xinhua, China Daily contributed to this story)

1   2   Next