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Chinese President Hu Jintao insisted that fixed asset investments should be constrained during the second semester and more productive steps taken in the scope of macroeconomic control.

Hu made his comments last Friday in talks with representatives of democratic parties, the All-China Federation of Industry and Commerce and some without party affiliation.

Measures needed to be taken in relation to loans, land supply and environmental protection in order to restrain blind growth in high energy-consuming and polluting industries, said Hu.

He said while China's national economy was able to sustain a healthy momentum in the first half of the year with fast growth, low prices and good performance there were, nevertheless, conflicts and difficulties in some areas. These required clear analysis, timely adjustment and control, said Hu.

In the second semester more investment should be channeled towards the social sector to boost the development of rural education, medical care and culture, he added.

Efforts should also be made to foster domestic demand especially consumption by farmers and medium and low income urban residents, the president observed.

China's foreign trade structure should be optimized and a balance struck between imports and exports, Hu said.

The president included the building of the new socialist countryside, system reforms in some key areas and tackling income distribution problems as priority economic objectives for the latter half year.

(Xinhua News Agency July 25, 2006)