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Zhu Rongji

Mainland to step up economic cooling moves

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Cary Huang

The central government will step up measures to prevent economic overheating and its main economic goal is to control investment and export growth, according to the top planning agency.

The mainland economy expanded 11.5 per cent year on year in the third quarter, slowing from the 11.9 per cent rise in the second quarter but surpassing the government's 8 per cent target for this year.

'We must keep sober-minded that there are outstanding contradictions and problems existing in the current economic operation,' Zhu Hongren, vice-head of the National Development and Reform Commission's economic operations department, told a conference reviewing economic performance in the June-September period yesterday.

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'In the remaining two months of the year, the government will further strengthen and improve macroeconomic controls and continue to avert economic overheating.'

Mr Zhu said the control measures included limiting the overly rapid growth in capital investment, exports and some energy-intensive sectors such as steel.

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He said that despite the rise in international energy prices, the mainland's energy-intensive industries were still growing too fast. He added that it was still difficult to resolve the country's regional and seasonal power shortages.

President and party chief Hu Jintao has made energy-efficient growth a central policy theme, with his favoured governing philosophy - 'scientific outlook of development' included in the party's constitution.

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