China set a target of 7% economic growth for 2004, down from 2003’s projected rate of 8.5%. The State Development and Reform Commission (SDRC) said the government’s goal of slowing the pace of GDP growth was aimed at cultivating a “scientific approach” to social development that placed more emphasis on indicators such as education, health, the environment and social welfare.
Economists said the target re-adjustment was aimed at curbing excessive growth in some sectors, which are putting a strain on transportation and power suppliers, driving up the prices of raw materials and damaging industries across the country.
US investment bank Goldman Sachs earlier estimated the country’s economy will grow as much as 9.5% in 2004, the highest rate in years. China to issue fewer treasury bonds China’s central government is planning to issue treasury bonds (T-bond) worth RMB 110 billion (US$13.3 billion) in 2004, RMB 30 billion less than the amount in 2003. Although it would maintain a certain scale of public borrowing next year, the government said the main purpose would no longer be stopping a downward slide in the economy and stimulating growth. Long-term T-bonds valued at a total of RMB 800 billion (US$96. 3 billion) were issued from 1998 through 2003.