China will work to enforce macroeconomic control measures in
grain production, Cao Yushu, deputy secretary-general with the
State Development and Reform Commission, said in Beijing
Monday.
While addressing a forum on China's economic situation, Cao said
despite an increase in grain production in 2004, there are many
hidden problems in the sector.
It is crucial to keep the grain price at a reasonable level in
condition of new increase in grain output in 2005, Cao said. Grain
prices directly affect farmers' income and the continuing rise of
grain prices will result in the increase of whole price level.
The grain output in 2004 surpassed the targeted 455 billion
kilograms and set a new record, but the 2003's output had been the
lowest since 1992.
Cao said with a growth rate of about 25 percent, China's
investment in fixed assets remains excessive. Adjustments are
needed for the irrational investment structure in fixed assets,
which leads to many problems in the national economy such as
oversupply in some sectors.
(Xinhua News Agency January 18, 2005)