China to cut public spending in 2005

The Chinese Government will trim spending next year in an effort to slow economic growth to a more sustainable pace.

Vice Finance Minister Lou Jiwei says China will reduce the size of its budget deficit and cut public investment. However, he stressed that the government will continue to invest in areas that need development.

Lou Jiwei says banks must control risk, but should also actively improve financial services and support reasonable demand for capital by firms that meet credit conditions.

A top government think tank says growth in the world's seventh-largest economy is expected to slow to 8.5 percent next year, from an estimated 9.3 percent this year.

Source: CRI news