Unemployment Rate News
- Nation plans to boost consumption
Date: 16-Apr-2007 Sources: (Shenzhen Daily)
CHINA reaffirmed its commitment to cut its trade surplus through a mix of financial reforms and steps to boost domestic demand, the International Monetary Fund steering committee said Saturday.
IMF officials said the Chinese plans, presented along with complementary programs to trim imbalances by euro-zone countries, Japan, Saudi Arabia and the United States, represented the Chinese Government's existing plans.
The IMF welcomed the plans by the five parties, saying that if implemented, they would 'constitute a significant further step toward sustaining solid economic growth and resolving imbalances.'
China later issued a statement saying that reducing external imbalances is a major government objective for 2007.
'Comprehensive measures will be taken to expand imports, and neutralize export and investment incentives, so as to achieve external balance over time,'said a statement by Hu Xiaolian, deputy governor of the People's Bank of China.
Urging all countries to oppose protectionism, Hu criticized 'measures taken by certain countries under the pretext of righting global imbalances?- a reference to threats by U.S. lawmakers to slap steep tariffs on Chinese goods unless the Chinese Government allows its currency to strengthen.
The highlights of China's plans, according to a statement issued by the IMF steering committee, are:
*Comprehensive steps to expand domestic demand, accelerate structural adjustment, and achieve a rough external balance over time.
*Attention to ensuring appropriate fixed-asset investment growth, improving investment efficiency, and reforming income distribution. Measures to increase household income and boost consumer demand, with an emphasis on rural consumption through education and health system reforms.
*Cutting external surpluses by reducing export tax rebates and encouraging overseas investment by Chinese entities.
*Deepening reform and improving governance of State-owned banks, expediting rural financial reform, developing capital and insurance markets, further opening up the financial sector and enhancing financial regulatory capacity.
*Gradually increasing exchange-rate flexibility, with attention paid to the value of a basket of currencies. Relaxing restrictions on holding and use of foreign exchange by enterprises and individuals.
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