The following article, written by a PD commentator on comprehensive, correct and active understanding and implementation of the central authorities' decision concerning macro-control and regulation of the economy, was published on the front page of this leading newspaper, August 4, 2004. Full text follows:

Beginning from the latter half of last year, in light of the outstanding contradictions and problems appeared in economic operations, the CPC Central Committee and the State Council have adopted a series of policy measures for strengthening and improving macro-control and regulation of the economy. Major efforts have been made to stimulate increased production of food grain and increased incomes for the farmers, keep down unplanned investment and low-level redundant construction by some industries, thus putting a curb on unstable and unwholesome factors in economic operations.

At present, China's economy as a whole is maintaining a good development momentum and is developing in the direction as expected for macro-control. Practice has proved that the central authorities' decision on strengthening macro-control is timely, correct and effective. This is the outcome of the correct leadership and decision of the CPC Central Committee with Comrade Hu Jintao as the General Secretary, as well as the result of the common efforts of various regions and departments and people of the whole country.

In 2003, China's economy scored a 9.1 percent growth, however, while the national economy witnessed rapid growth, there also emerged some unstable and unhealthy factors, as manifested prominently in the following: unplanned investment and low-level expansion by iron and steel, electrolytic aluminum and cement industries, the excessive speed of the input of money supply and credits, the substantial price rise of capital goods, the short supply of coal, electricity, oil and transportation service; the strained relations between food supply and demand, and successive years of reduction in sown area and in grain output. Historical experience has repeatedly proved that the simultaneous occurrence of drastic reduction in grain output and swelling demand for investment is often liable to cause major economic fluctuations, recovery of the economy requires a long period of time and payment of a high price.

The Party Central Committee and the State Council, approaching matters with great insight and making decisions in a decisive manner, have successively adopted a host of specific control measures and have further intensified macro-control efforts especially after the "two sessions (the NPC session and the CPPCC session) held early this year. On the one hand, they firmly grasped agriculture, particularly the weak link of grain production, supported grain production by taking a series of more direct and more effective measures. On the other hand, they got a firm hold of the sharp contradiction of investment expansion, strictly guarded the two "sluice gates" of credit and land, kept down the too rapid growth of fixed asset investment, and brought under check blind investment and low-level expansion done by some sectors.

Economic operations since the beginning of this year, especially since the second quarter, indicate that the various macro-control-related measures taken by the Party Central Committee and the State Council have gradually been put into effect and have yielded tangible results. Grain production has taken a favorable turn-a good harvest of summer grain has been reaped with a 4.8 percent growth of production, early season rice is expected to have an increased production, autumn grain crops in an expanded area are doing well, the momentum of inordinate growth of fixed asset investment has been brought under initial control, as evidenced by the fact that in the first half of this year, the growth rate of society's fixed asset investment has dropped from 43 percent in the first quarter to 28.6 percent, the growth rate of investment particularly in some overheating industries has fallen notably. The growth of monetary credits has slowed, significant progress has been made in the rectification and improvement of the land market, the price hikes of capital goods has tended to become alleviated.

Tightened and better macro-control has given great impetus to the sustained, stable and relatively rapid development of the national economy. China's industry continues to maintain a fairly rapid growth, economic returns continue to go up, enterprise profits and financial revenues increase substantially, foreign trade keeps up a rapid growth, residents' income and consumption witness an accelerated increase, the cash income of farmers, in particular, has hit a two-digit growth unprecedented in the past years, commodity price remains basically stable, employment and re-employment work has gained new progress. The Jan.-Jun. GDP grew by 9.7 percent, 0.9 percentage points higher than that in the same period of the previous year.

Achievement does not come easily, and experience is especially precious. The key factors for the notable results of the various macro-control policies gained within a short period of time lie in the early discovery of matters, accurate judgment, resolute decision-making and active control by the Party Central Committee and the State Council; the central authorities take proper guidance, protection and display of the enthusiasm of various quarters and the promotion of a fast and satisfactory development of the national economy as the fundamental starting point for macro-control; they persist in giving prominence to key points, dealing with different things in different ways, refraining from handling matters by a "uniform method"; they persist in getting things to proceed in opportune and proper rhythm and refrain from "applying abrupt brakes"; they persist in the use of mainly economic and legal means, complemented by appropriate administrative measures and pay attention to actual results; they persist in tackling problems by looking into both the root cause and symptoms, and lose no time in propelling reform and pay attention to solving institutional and mechanistic problems. These experiences are of important significance for us to establish and implement a scientific development concept, have a profound understanding of the characteristics and law of China's economic development, study ways for fundamental solutions of problems, make long-term plans and do a good job in various items of work relating to reform and development.

Currently, macro-control is still at a crucial stage. We should fully understand the arduousness and complexity of the task of macro-economic control under new the situation, we should not waver in our determination and slack off in our work. We are convinced that as long as we persist in taking Deng Xiaoping Theory and the "three represents" important thought as the guide and, centered closely around the magnificent goal of building a moderately prosperous society in an all-round way, comprehensively, correctly and actively understand and implement the various policy measures defined by the central authorities for macro-economic control, and unremittingly do various items of work well, we can ensure realization of the anticipated goal of macro-economic control, and guarantee faster and better economic and social development for our country.

By People's Daily Online