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NDRC: Fixed assets growth sparks warning signal
(China Daily/Xinhua)
Updated: 2006-08-02 08:47
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A report from China's economic watchdog has warned that fixed assets continue to lead galloping investment growth into overheating.
The National Development and Reform Commission (NDRC) said overall fixed assets investment during the first half grew 29.8 precent to 4.24 trillion yuan (530 billion US dollars), 4.4 perentage points higher than the same period last year.
Meanwhile, nearly 100,000 new construction projects were launched, 18,000 more than the first half of last year.
Some industries showed signs of overheating. Investment in textiles surged by 40.6 percent and automobiles by 44.5 percent in the first half, accelerating from the first quarter.
Some projects deviated from the state's industry plan, and repeated construction remained serious, the report said.
The problems were attributed to local governments' blind pursuit of rapid economic development, excessively driven by growth in fixed assets investment, the report said.
Rampant illegal land use exacerbated the problem.
The report suggested efforts to curb the soaring fixed assets investment, including stricter controls on the number of new projects, more stringent land management, tighter bank lending, and a more efficient investment structure.