State Council: China's economy on track but problems exist

The pressure brought about by China's fast investment and lending growth has been relieved to some extent and the national economy is heading in the intended direction, according to a document released from a State Council executive meeting on Wednesday.

But possibilities for the investment and lending growth to rebound still exist, warned the document from the meeting presided over by Chinese Premier Wen Jiabao.

According to the document, the Chinese economy is currently faced with problems. There is growing pressure from the need to raise farmers' incomes, rapidly rising energy consumption, a deteriorating environment, and a worsening imbalance of international payments.

In the last quarter of the year, the document said the Chinese government will strengthen support for farmers. It will strive to stabilize the grain price and prices for agricultural production materials.

The document urged local authorities to tighten controls over land supply, bank lending and market access and fully implement the macro-control policies to cool down the property market.

To reduce energy consumption and environmental pollution, the document called for heavily polluting, energy-consuming industries to phase out old, low-efficient equipment.

The document also ordered a steady supply of the gasoline, coal and electricity in the winter time. It required local authorities to ensure migrant workers' salaries are paid on time and in full.

Source: Xinhua