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Chinese President Hu Jintao insisted that fixed assets investment should be reined in during the second semester and more effective measures taken in the field of macroeconomic control.

Hu made the remarks in talks with representatives from democratic parties, the All-China Federation of Industry and Commerce and personalities without party affiliation, held here last Friday.

Measures should 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.

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

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 said.

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

China's foreign trade structure should be optimized and a balance struck between imports and exports, he 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 tasks for the latter half year.

(Xinhua News Agency July 25, 2006)