CRI听力:China to Continue Fiscal and Monetary Policies Next Year

China will continue its proactive fiscal policy and moderately easy monetary policy next year and endeavor to improve the quality of economic growth.

Meanwhile, the Chinese government will enhance efforts in 2010 to promote agricultural development, strengthen produce supply to the market and expand rural demand. Zhangcheng has more.



China's Central Economic Work Conference, which is held once a year to set the tone for economic development in the next year, just concluded in Beijing.

At the conference, it was agreed that 2010 is the last year in the country's 11th five-year plan.

In this way, doing a good job in the country's economic and social development in the coming year is the key to dealing with the impact of the international financial crisis and laying a sound foundation for China's 12th five-year plan. (www.hxen.net)

Participants at the meeting agreed that China would continue its proactive fiscal policy and moderately easy monetary policy next year to strengthen the flexibility of the economy.

Zhuang Jian, a senior economist with the Asian Development Bank, said this signal indicates that the central government has noticed the hidden risk in the 10 trillion yuan, or about 1.5 trillion U.S. dollars, in credit provided this year.

He predicts that the government will adjust a series of policies to control the credit increase in the first half of 2010.

"The increasing amount of credit this year will in a way bring inflation to the national economy. If the rapid credit growth continues next year, I think the central government will adopt some flexible measures to adjust related policies, such as releasing more Central Bank bills and strengthening the management of credit provided by commercial banks."

Also at the meeting, Chinese leaders touched upon the issue of developing a low carbon economy.

Zhou Dadi is an energy expert with China's Development and Reform Commission.

He reveals that the development of a low-carbon economy is expected to be listed into China's 12th five-year plan.

He says China is still a developing country, the priority of which is to realize the stable and rapid growth of its economy.

By doing so, a large amount of energy will be consumed, which will bring more gas emissions. In this way, the solution is to adjust energy structures.

"For a country like China, the priority is to save energy and reduce gas emission. Second, to adjust energy structure; third, we should make more efforts to develop forest industry to reserve more carbon sink."

Zhou Dadi says many cities and enterprises have recently voluntarily applied to be the test points of the development of a low carbon economy.

Also Central Economic Work Conference, participants agreed to enhance efforts in 2010 to promote agricultural development.

A statement from the conference says the government will strengthen rural policies to increase farming-related subsidies, increase incomes of farmers and expand demand in rural areas.

Zhang Zhaoxin, an economist at the Research Center for Rural Economy under the Ministry of Agriculture, says China's agricultural subsidies comply with WTO rules.

"Different countries give subsidies to agriculture in various ways. Agricultural subsidies in Japan, the European Union and South Korea are relatively high. Compared with these countries and regions, China's subsidies are very low. "

According to the statement from the conference, measures will also be enacted to improve agricultural production capacity, and quicken steps to develop modern agriculture.

The government will maintain relatively stable prices for produce next year and will increase the minimum purchase prices in major grain categories.

Zhangcheng, CRI news.