The failure to control capital investment threatens economic stability, say experts
The top planning agency has renewed calls for curbs on capital spending and credit as economic officials meet at a northern resort to hammer out new measures to cool the mainland economy.
In a report published by Xinhua, the National Development and Reform Commission warned that failure to curb overly rapid fixed-asset investment and credit growth could threaten economic and social stability.
Meanwhile, more than 100 top central and regional economic officials were meeting in Beidaihe to discuss the situation and work out new macroeconomic control measures, the 21st Century Business Herald reported.
The reports suggest Beijing believes tightening measures put in place since the second quarter of the year have failed to tame the economy, as evidenced by economic data for the first half of this year.
The economy expanded by 10.9 per cent year on year in the first six months, raising expectations that more tightening measures were imminent.
The rapid growth has prompted top leaders, including President Hu Jintao and Premier Wen Jiabao , to warn about further action to rein in investment-driven growth. Leading institutions are also scrambling to produce economic outlook projections and advise the government on further tightening moves.
