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Property, auto are pillars of economy

0 CommentsPrint E-mail CCTV, January 20, 2010
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The Chinese government recently initiated a series of policies to rein in the country's surging property price amid rising concerns of housing bubbles. But the chief economist of the National Bureau of Statistics has reaffirmed the property sector will still be one of the pillars of the economy.

The Chinese government is set to tighten controls on the property sector. But chief economist Yao Jingyuan says the economy still needs to rely on the sector.

He says the country must stick to developing the property sector, as it's closely linked with iron and steel, cement, construction, home appliances and many other key sectors.

The Chinese government made key changes to its real estate polices over the past month to damp down speculation. Surging property prices fueled concerns of speculation and asset bubbles. Moves included extending the minimum ownership period for exemption of a 5-and-a-half percent tax to 5 years from two, and requiring stronger control over granting mortgage loans.

Yao Jingyuan says the auto sector is also an important pillar. It's connected with iron and steel, electronics, chemicals, rubber, glass, textiles, and many key others.

Government policies helped China's auto sector rebound quickly from the financial crisis. Auto sales surpassed the US to rank Number One in the world.

Yao Jingyuan also addressed sustainability concerns over relying on the auto and property sectors to drive the economy. The chief economist says the two sectors will continue to serve as crucial pillars of the country's economy, but need further development.

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