(China Daily)
Updated: 2007-11-29 07:22

Chinese authorities have made it clear that macroeconomic regulations will be carried into next year to ensure sound and rapid economic growth.

That means policymakers will focus on both preventing the sizzling economic growth from overheating and stopping price hikes from running out of control.

Strengthened macroeconomic regulations might slow a little bit the country's economic expansion next year, a year that is bound to be a big one for China. But the central authorities' decision to do so marks an ostensible effort to put the country's long-term growth and the welfare of the people before instant economic results.

On the one hand, the Chinese economy soared 11.5 percent year on year in the first three quarters of this year. Though China has long boasted robust economic growth, such a blistering GDP growth still appears too much for the country that is undergoing crucial changes in its growth pattern.

To reduce its external imbalance, China needs to cut its dependence on investment and export for growth. To raise its energy efficiency and lower pollutant discharge, the country has to put a brake on extensive investment growth.

Hence, more tightening measures that can check excessive investment growth, especially in energy-consuming and polluting industries, are essential to the pace of China's pursuit of sustainable development.

On the other hand, consumer price inflation reached a decade-high in recent months, biting deeply into the pockets of people, in particular, those low-income families.

The country's consumer price index grew by 6.5 percent in October, matching the decade's high in August. It is expected to reach 4.5 percent for this year, much higher than the benchmark of 3 percent set by the central bank earlier this year.

To cushion the underprivileged from the ever-rising prices, the government should provide them with prompt, adequate financial aid. But to rein in the overall price inflation, it is important that policymakers keep bringing into place more tightening measures to cool economic growth as well as the public's inflationary expectation.

(China Daily 11/29/2007 page10)