EXECUTIVE vice-premier Zhu Rongji has warned that austerity measures will be intensified because of resistance from, and lack of understanding by, central and local cadres.
And a pro-Chinese newspaper in Hong Kong has reported that several cities have lost their privilege of reporting directly to Beijing on budgetary and other financial matters.
The semi-official China News Service reported last night that Mr Zhu had said the campaign to rectify economic problems had not been carried out properly.
''There is still incorrect understanding about [policies to] strengthen macro-level adjustments and control'', he said in a recent meeting on transforming the management of state-owned enterprises. ''Some [austerity] measures have not been implemented.'' Mr Zhu said the problem of excessive capital construction had not been solved.
''We have not come up with effective measures to suppress the excessive expansion of real estate'', he said.
''If this goes on, [national] priorities cannot be guaranteed and the [economic] structure cannot be re-adjusted''.
