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Chinese Vice Premier Zeng Peiyan urged local governments to carry out macroeconomic control measures adopted by the central government to rein in the galloping economy.

 

Fixed assets investment should be in tight control and more efforts be made to lower energy consumption and improve environmental protection, said Zeng during his recent inspection tour in southwest China's Yunnan Province.

 

As China's economy reported a 10.9 percent growth in the first half of the year, Chinese top leaders have warned of possible overheating and emphasized better macroeconomic control.

 

The central government has made explicit requirements on economic work in the second half, said Zeng, urging local governments to keep in accordance with the central government and strengthen implementation of policies on macroeconomic control.

 

Local governments played an important role in pushing the economy.

 

Official figures show investment projects approved by local governments contributed 90 percent of the total fixed asset investment, with the remainder initiated by the central government. China's fixed assets investment rose 29.8 percent in the first half of the year, still at a breakneck growth rate.

 

Despite high-level warnings, local governments strove to gain more GDP growth driven by local interests.

 

A report of the National Development and Reform Commission, the country's economic planning body, claimed that the GDP of 31 provincial areas on the Chinese mainland had grown at an average rate of 12 percent during the first six months. The gap between the average GDP growth reported by local governments and the figure published by the National Bureau of Statistics has widened since 2000.

 

(Xinhua News Agency August 13, 2006)