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Beijing vows to continue curbs on investment

China will keep a tight grip on economic policy for the rest of the year to hold down investment growth and inflation, Premier Wen Jiabao said yesterday.

  • Reuters
  • Published: 23:44 October 24, 2007
  • Gulf News

Beijing: China will keep a tight grip on economic policy for the rest of the year to hold down investment growth and inflation, Premier Wen Jiabao said yesterday.

Setting out his economic priorities for the fourth quarter, Wen said the government would curb excessive investment, especially in industries that guzzle energy and belch pollution.

Official figures due today are expected to show that the economy last quarter expanded at close to the first-half pace of 11.5 per cent, the fastest clip of any major economy, driven by capital spending on everything from apartments to airports.

"Currently, new projects are expanding too quickly. We must strictly control them, especially energy-intensive, highly-polluting projects as well as those in sectors where there is over-capacity," Wen said.

His remarks were carried on the government's main website, which summarised the results of a routine meeting of the State Council, China's cabinet.

Wen also ruled out, in principle, any increase for the rest of the year in prices controlled by the government, which include energy, transport and utilities. That policy was first laid out last month by the National Development and Reform Commission, the main planning agency, after consumer inflation rose to a decade high of 6.5 per cent in the 12 months to August.

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