China takes cautions in 2004 against overwhelming economic growth
China's State Council has reportedly implemented some measures towards the end of December in order to draw fast growth rate to a more balanced economic growth. It is expected that these measures won't affect China's strong growth and help maintain 8-8.5% levels in 2004. 2003 was a plentiful year for China, in the first eleven months of which exports grew by 32.9% and imports by 39.1% over same period in 2002. Again for January-November period, the increase in fixed-asset investment, which is believed to push the economic growth and be necessary for surviving a possible economic distress due to SARS disease, was recorded as 29.6%. However, strong growth in China caused some problems such as domestic shortages in energy and natural sources which raised coal, oil and steel prices. Besides, electricity cuts in many regions led to disruption of local economies. Accordingly, China announced that they are planning to restrain spending as well as consumption, raise power tariffs for the purpose to mainly lower adverse effects of fast growth. State Council declared that they will restrain consumption and expenses by limiting new projects and investments, and consequently cool hot industries like property and construction as smaller companies, flooding those industries will be blocked. This will surely pave the way for the bigger companies. Meanwhile it is understood that China is hesitant to take more risky measures avoiding a slow down in overall economy.