Related stories

Thinking About Business in New Years China Business Summit Held in Beijing Brands in Transition: Making it Work in China One Night in Beijing, Luxury in China Foreign Banks Granted More Freedom in Currency Business

Rural Incomes a Hot Issue in 2005

Central government actions to increase rural incomes will top China's economic news this year of 2005, according to a forecast by leading economists and media chiefs.

Increasing rural incomes is one of the central government's most important tasks for this year. Economists report the government will try to better balance relationships between resources and environmental protection and economic development in 2005.

It will give up the idea of pursuing high economic growth at the expense of resources and the environment, despite questions wonder whether the government can effectively address shortages of coal, electricity, oil and transportation.

Serious workplace accidents were prevalent in 2004. Addressing this problem will also be a major topic this year. 

The government will also try to create more jobs, increase support for rural workers and low-income urbanites. Real estate will continue in the spotlight this year. An adjustment in the interest rate and land policies will affect the property market.

People are expected to closely monitor issues such as housing prices and supply and tax reform. The reform of personal income taxes, enterprise income taxes, and tax-revenue sharing between the central and local governments will get a great deal of attention.

Financial reform is expected to progress, along with reform in general, including the share-holding reform of State-owned banks, the liberalization of the renminbi interest rate, an improvement in the foreign-exchange-rate mechanism and in the area of private companies' gaining greater access to the banking sector.