December 10, 2007

China to curb grain exports and up imports

China's top economic planner expressed long-term plans to curb exports and industrial use of grain while boosting imports to rein inflation.

Ma Kai, minister of the National Development and Reform Commission, said China would strictly control industrial use and exports of grain while expanding imports to prevent a shift from structural price rises to evident inflation.

Rising grain consumption and a limited ability to increase the harvest may soon force China to relax its policy of grain self-sufficiency.

Despite a few years of bumper harvest, tightening grain supply has worsened inflation to an 11-year high in October at 6.5 percent.

Ma said the country would boost production of necessities, including grain, edible oil, meat and other major agricultural products to ensure market supply.

The central government would also increase its overall investment budget and continue to adjust investment structure, Ma added.

Vice Premier Zeng Peiyan expressed the need for local authorities to unveil more measures to conserve energy, protect the environment and improve the people's livelihood.

Zeng also called for an improved fiscal and tax system and macro-control efforts for a coordinated and sound economic growth.

The government said on Wednesday its two main economic policy goals for 2008 were to prevent the economy from overheating and to keep food price inflation from spreading to other sectors.