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Economy to dominate leaders' Beidaihe strategy talks

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Premier Zhu Rongji has started preparations for the annual leadership meeting at the summer resort of Beidaihe.

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Sources close to the meeting, due to start in mid-August, said it would be dominated by economic issues, including ways of ensuring the target of an eight per cent growth rate is reached.

Other issues concerned Beijing's response to the Asian financial crisis, especially how to maintain the yuan's stability in the face of a weak yen.

'Zhu wants government departments and local administrations to give him the real picture, saying he won't accept embellished figures,' a source said.

'The Premier said regional cadres should concentrate on finding the source of their economic problems rather than presenting a facade of prosperity.' A diplomatic source said Mr Zhu was taking a two-pronged approach to the 'eight per cent question'.

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'On the one hand, Zhu is issuing orders to departments and localities about meeting this growth target,' he said.

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