China targets quality, efficient growth in 2013

BEIJING - Chinese authorities vowed Sunday to focus on quality and efficiency of economic growth in 2013, demonstrating their determination to ensure sustainable and healthy economic development after the previous pursuit of fast-track growth.

A statement issued after the closure of central economic work conference, which set the tone for economic policymaking next year, said "enhancing quality and efficiency of economic growth" will be a "central task."

The two-day conference offered a first glimpse into economic policies eyed by the new top leaders of the Communist Party of China, who decided to maintain a proactive fiscal policy and prudent monetary policy in 2013 as they expect global economy to maintain a low growth.

"The global economy has entered a period of profound transition and correction from a period of fast growth in the pre-crisis years," the statement said, warning of rising protectionism and increasing pressure from potential inflation and asset bubbles.

Easing measures, included the latest round of quantitative easing in the Unites States and monetary easing in other economies, have again pushed up global inflationary pressure.

Yao Jingyuan, a researcher from the Councilor's Office of the State Council, or China's cabinet, said the most prominent problem with the Chinese economy is no longer growth rate but its quality and efficiency, which will stay unsteady and unsustainable if these issues are not solved.

Due to flagging exports and domestic efforts to contain runaway property prices, China's annual economic growth slipped to 7.4 percent in the third quarter this year, slowing for seven quarters in a row.

To boost quality growth, the statement said expanding domestic demand will be a strategic basis for China's development next year.

New growth points should be created in domestic consumption, which will serve as both a strong pulling power and foundation for the economy's sustained and healthy development, it said.

The country has been trying to restructure national economy to wean off its reliance on exports for growth, as its main trade partners like the European Union and the United States are embroiled in debt crisis.

 

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