China needs stronger green tightening: Think-tank

Beijing, Aug 1: China needs to redouble its efforts to curb wasteful investment and clean up its environment as a way to cool down the sizzling economy, according to a report by a government think-tank published on Wednesday.

Environmental protection is becoming an important lever for the government to slow breakneck economic growth, especially in sectors that cause serious pollution.

The State Information Centre, under the wing of the National Development and Reform Commission (NDRC), suggested higher power, land and administrative charges should be levied on polluting projects to discourage them because the risk of economic overheating is growing in China.

Beijing should take a slew of other measures, from price reform of key resources to developing technology to cut emissions, according to the report published in the official China Securities Journal.

China's statistics bureau said the country reduced unit GDP energy consumption by 2.78 per cent in the first half of 2007 thanks to reinforced efforts by Beijing. China missed its target of a 4 per cent cut in energy consumption per unit of GDP in 2006.

The report also said China should maintain monetary tightening and deepen reform of the exchange rate system. It did not elaborate.

It said China should import more resources, energy and know-how to trim its trade surplus in addition to further adjustments in export tax rebates.

China's GDP increased 11.9 per cent in the second quarter, compared with a year earlier, the fastest pace since 1995.

Reuters>