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BEIJING, Jan. 25 (Xinhua) -- In December 2008, China's light industry enjoyed an output growth of 8.1 percent year-on-year, which sharply outpaced the 4.7 percent growth of heavy industry. The latest statistics from the National Bureau of Statistics show that the output of state-owned enterprises suffered a decline. In December, state-owned and state-controlled enterprises witnessed an output drop of 0.6 percent, while that of private enterprises went up 16.3 percent, overseas-funded enterprises was up 0.3 percent. According to the statistics, in December the country produced 219.9 million tonnes of coal, down 1.3 percent year-on-year; the output of crude oil was 15.7 million tonnes, up 0.4 percent; crude steel fell 10.5 percent to 37.79 million tonnes; and motor vehicles dropped 18.9 percent to 685,700 sets. In December, China's industrial output grew 5.7 percent, or 0.3percentage points faster than the previous month.
BEIJING, Oct. 31 (Xinhua) -- China's decision to cut interest rates on Thursday is part of its flexible monetary policy to cope with the world financial crisis and boost domestic economy, a central bank spokesman said on Friday. Li Chao, spokesman of the People's Bank of China (PBOC) explained the government's cut in interest rates for the second time in one month. On Wednesday, the PBOC announced to cut interest rates by 0.27 percentage points as of Oct. 30 to spur economic growth. The benchmark one-year deposit rate dropped to 3.60 percent from 3.87percent, while the benchmark one-year lending rate fall from 6.93 percent to 6.66 percent. The previous cut was on Oct. 8, when the PBOC announced a lowering of deposit and lending rates by 0.27 percentage points and decided to cut the reserve-requirement ratio by 0.5 percentage points from Oct. 15. Li said the move was in response to a spreading and worsening world financial crisis. "The severe crisis was beyond most people's expectations." He said: "China's economy relies highly on external markets. It is very necessary for the country to adjust economic policy, including monetary policy, in a timely and flexible manner to reduce the negative impact to a minimum." "Recently, China's exports have weakened as a result of weak world demand. Domestic export-oriented enterprises, especially those coastal based companies, face difficulties," he added. The country's export value in the first three quarters was 1.07trillion dollars -- up 22.3 percent -- the growth rate was 4.8 percentage points lower, official figure showed. "Meanwhile, the nation's inflation pressure has been eased," he said, adding the latest interest rate cut aims at maintaining the energy of China's economic growth. China's gross domestic product (GDP) grew to 20.16 trillion yuan (2.96 trillion U.S. dollars) in the first three quarters of this year, up 9.9 percent from the same period of last year. The growth rate was 2.3 percentage points lower than the same period last year. Consumer price index (CPI), the main gauge of inflation, rose 4.6 percent in September over the same period last year, off from the 12-year high of 8.7 percent in February. When asked the reason why the government only reduced interest rates and left the reserve-requirement ratio unchanged in the latest move, Li said this is because liquidity of the country's bank is adequate. Li said to cope with the international financial crisis and maintain sound and relatively fast national economic growth, the central bank has removed mandatory restriction on the commercial banks' loan plan. He said that China has confidence that it can resist the world financial crisis, as the country has great potential in expanding its domestic demand, and the financial system is stable. He called for cooperation between countries worldwide to cope with the crisis, and to carry out international financial system reform
BEIJING, Jan. 25 (Xinhua) -- Many Chinese received a smaller bonus this year because of the global financial crisis and decided to tighten their belts - but they still let their hair down for the traditional Spring Festival. The freezing weather and slowdown in economic growth did not affect Chinese people's festivities, with supermarkets and shopping malls crowded with shoppers seeking goods for the Spring Festival celebration. Even dairy products, which have experienced shrinking sales because of the melamine scandal, were selling. Milk powder products of domestic brands have reappeared on the shelves, a Xinhua reporter found in Wal-Mart at Xuanwumen, Beijing. "This is the safest period for dairy products as the government has intensified quality supervision and inspection after the scandal," said saleswoman Qiao Xinhong. Many Chinese people like to buy boxed milk or yogurt for family reunions or as gifts to friends and relatives during the holiday. Dairy products, however, were only one part of people's shopping list, and snacks with wider varieties, clothes, jewellery and home appliances were also popular. The week-long Spring Festival holiday, which starts from Sunday, is China's closest equivalent to the West's Christmas shopping season. According to the Ministry of Commerce, sales at the country's major retailers on Thursday were 2.4 times as much as that on December 31. China's real retail sales growth in December accelerated 0.8 percentage points from November to 17.4 percent, according to figures released by the National Bureau of Statistics (NBS) Thursday. Retail sales jumped by 21.6 percent last year to 10.8 trillion yuan (1.6 trillion U.S. dollars), which was 4.8 percentage points higher than 2007. The booming Chinese market has become more attractive to foreign retail giants, who have suffered from weak demand caused by the global financial crisis. "Although the global financial crisis has weighed on China's economy, the fundamental of the country's economy remains unchanged and we are very optimistic about the prospects for the Chinese market," Britain's largest retailer Tesco told Xinhua in an email. Sales in the rural market, which is believed to have the great potential to boost domestic demand, has reported month-on-month increases since May. November retail sales in rural areas rose 18.3 percent, 8.2 percentage points higher compared with the same period of 2007 and for the first time surpassed urban consumption growth. Wei Wanqian, a farmer in eastern China's Shandong Province, was busy with the last-minute preparations to celebrate the Spring Festival. He bought a new tractor earlier this month. "Boosting domestic demand should be the government's major taskof economic work," said Zuo Xiaolei, senior analyst at the Beijing-based Galaxy Securities. "Effective boosting measures along with the improvement of social security system will accelerate the consumption growth by two to three percentage points this year," Zuo said. The State Council, or the Cabinet, has taken an array of measures to enhance domestic consumption. These included improving the rural distribution network, promoting the subsidized home appliance program and boosting festival consumption. More detailed measures would come out in March during the delivery of the government work report, sources said. Although the impacts of global financial crisis were still unfolding, some positive signs surfaced in December economic date, officials and analysts have said. These included the figures on money supply, consumption and industrial output. Whether the "positive changes" represented a trend was unclear, NBS director Ma Jiantang said.
LIMA, Nov. 21 (Xinhua) -- Chinese President Hu Jintao on Friday gave a brief outline of the country's future development to the business community of the Asia-Pacific Economic Cooperation (APEC). Addressing the APEC Chief Executive Officers (CEO) Summit, Hu said China will continue to follow the Scientific Outlook on Development by putting people first and making development comprehensive, balanced and sustainable. "We will unswervingly pursue reform, improve the socialist market economy and build systems and institutions that are dynamic, efficient, more open and conducive to scientific development," Hu said. China will follow a new path of industrialization with Chinese characteristics and transform the mode of economic growth, he said. Chinese President Hu Jintao addresses Peruvian Congress in Lima, capital of Peru, Nov. 20, 2008. Hu said here Thursday that China is willing to make concerted efforts with Latin American countries to establish a comprehensive cooperative partnership of equality, mutual benefit and common development Instead of relying heavily on higher consumption of resources, China will achieve development by making scientific and technological progress, improving the quality of the workforce and developing innovative management, he added. Since the beginning of this year, China has taken robust measures to address the complex changes in the international economic environment and the severe challenges of major natural disasters. "We have strengthened macroeconomic regulation in a timely way," Hu said, adding "The fundamentals of the Chinese economy have not changed." "The steady and relatively faster economic development in China is in itself a major contribution to upholding international financial stability and promoting world economic development," he emphasized. Between January and September this year, China's gross domestic product grew by 9.9 percent and the three major demands of investment, consumption and export all grew by over 20 percent. However, since September, with the spread and development of the financial crisis, difficulties confronting China's economic development have become more and more obvious, Hu said. The growth rate of China's export has begun to decline and industrial production and corporate profits have been adversely affected to varying degrees, he added. "In view of this and in order to boost economic development, the Chinese government has strengthened macroeconomic regulation in a timely way and decided to follow a proactive fiscal policy and a moderately easy monetary policy," the president said. China has lowered the required reserve ratio, cut the deposit and lending rates and eased the corporate tax burdens, he added. China has recently adopted even stronger measures to generate greater domestic demand, Hu said. He said the central government has decided to invest an additional 100 billion yuan (14.6 billion U.S. dollars) this year to accelerate projects related to people's livelihood, infrastructure, the eco-environment and post-disaster reconstruction. This is expected to generate a total of 400 billion yuan (58.4 billion dollars) of investment nationwide, he pointed out, adding between the fourth quarter this year and the end of 2010, investment in these projects alone will reach nearly 4 trillion yuan (584 billion dollars). Implementation of these measures will give a strong impetus to China's economic development, Hu said. Hu arrived here on Wednesday for a state visit to Peru and the Economic Leaders' Informal Meeting of APEC scheduled for Nov. 22-23.
BEIJING, Nov. 10 (Xinhua) -- The Chinese government will inject more funds for investment and improve investment structures to better cope with adverse global economic conditions, the State Council (Cabinet) decided at an executive meeting presided over by Premier Wen Jiabao on Monday. To achieve "steady and relative fast" economic growth and prevent "economic ups and downs" amid global and domestic economic challenges was on top of the country's agenda, said Wen. The government on Sunday announced it would launch a stimulus package estimated at 4 trillion yuan (570 billion U.S. dollars) to be spent over the next two years to finance programs in 10 major areas, such as low-income housing, rural infrastructure, water, electricity, transport, the environment and technological innovation. "The country should strengthen management of large-scale investment projects, conduct feasibility studies in an earnest manner and increase investment efficiencies and profits," said a statement from the meeting, in which provincial leaders and Cabinet ministers participated. Wen said the stimulus package was crucial to tiding over the difficulties and maintaining long-term economic growth momentum. He urged local governments to be "quick" and "effective" in carrying out these measures with "large-scale" investment programs launched to boost domestic demand. The meeting participants called for more efforts to increase incomes and consumption capabilities, raising low-income earnings, promoting the "stable and healthy" development of the property sector and maintaining steady export growth. The country should endeavor to enhance competitiveness, improve financial macro-management and facilitate the steady and healthy development of the stock market. China announced on Sunday that it would adopt "active" fiscal and "moderately active" monetary policies to expand domestic demand and speed up construction of public facilities. The meeting also decided to push forward a series of key reforms, including restructuring the value-added tax regime, which could cut the tax burden on enterprises by 120 billion yuan next year.