China's Finance Minister Jin Renqing said in London on June 10 that China's macro-control policy had worked effectively, the upsurging fixed assets investment in some sectors been curbed, and the fiscal deficit would be down to 2 percent this year from 2.7 percent in 2004.

In his speech when he was honored as Finance Minister of the Year 2005 for Asia, Jin affirmed that China's economy was sound and experiencing a new growth cycle. In 2004, he remarked, the Chinese government took macro-control measures to eliminate unhealthy and unstable factors in its economy, which had proved to be evidently effective.

As a result, he observed, the run-high fixed assets investment has been reined in, the weak agricultural production, the grain output, has gained energy, and the inflation has been contained.

He added that China adopted prudent fiscal policy and monetary policy after it had its proactive policies phased out this year. This has led to a better balanced economic mix with a slowdown of industrial growth, accelerated agricultural development, downward investment and domestic consumption upturn.

He also confirmed that the fiscal performance was healthy for the first quarter and expected a 2 percent GDP for the fiscal deficit.

He expressed his confidence that China's peaceful rise would not only be a great boon for the 1.3 billion Chinese population, but also bring an enormous market and good opportunities to the global economy as a whole.

By People's Daily Online