Last year's bottom ranking in economic growth
in China has not blunted Beijing's determination to bid farewell to
GDP-oriented policies.
The
capital city will continue to pursue sustainable economic growth and build a
more liveable environment for its residents, said Ji Lin, executive deputy
mayor of Beijing.
"We
will not sacrifice sustainable development and people's living standards for
GDP growth," Ji told China Daily on the sidelines of the annual session of
the National People's Congress.
The GDP
growth rate in the capital slowed to 8.1 per cent in 2011, the lowest of all
provinces and municipalities in China, while the country's overall performance
was 9.2 per cent.
Ji said
the slowdown resulted from the government's efforts to upgrade its economic
development model.
For
example, stricter regulation of the real estate market, purchasing controls on
vehicles, and the relocation of Shougang Group, one of the largest steelmakers
in China, dragged down Beijing's GDP growth by as much as 2.2 per centage
points, he said.
"Although
our economic growth was the slowest last year, it's just temporary. In the long
run, its development will be sustainable and sound, conducive to the welfare of
the public," he added.
"We
will continue the controls on car and home purchases this year and make more
efforts to improve the environment."
According
to the deputy mayor, heavily polluting and power-hungry industries are not the
only options for increasing economic growth.
"Environmental
protection industries and those that benefit people's daily lives can also be
the engine for growth," he said, adding that the city government will
inject more cash into those industries this year.
Improving
air quality in the city is one of the government's main goals.
Ji, who
took the office in 2007, said the government will take more action to monitor
and reduce the level of PM2.5, particulate matter smaller than 2.5 micrometres
in diameter, which can be hazardous after reaching a certain concentration.
The
city plans to switch most of its coal-fuelled power and heating facilities to
natural gas in the coming years to cut down coal consumption, he said.
"Our
original plan was to cap coal consumption at 20 million tonnes a year by the
end of 2015, which has been replaced by the new target of 15 million
tonnes."
The
government will also remove more high-emission vehicles from streets and raise
fuel standards to meet standard V (the highest standard in China for vehicle
emissions) in the second half of 2012.
Ji said
the city will continue to develop the service industry as the main industry,
especially the financial sector. "Attracting more foreign investment is
our consistent policy."
In May,
Beijing will hold the annual China (Beijing) International Fair for Trade in
Services, considered the second in the country for attracting foreign
investment, after the Canton Fair in South China's Guangdong province.
"Economic
reconstruction is a good opportunity to promote foreign investment, and we will
bring in more new technologies and innovative industries."
In
addition, Beijing plans to reduce the tax burden on enterprises in the city.
Ji said
Beijing has applied to the central government for reforms to value-added tax,
and if successful, the city will apply them in July.
"Generally
speaking, the reform will benefit the city's service industry, and in the long
term, most of the enterprises in the city will have to pay less tax," he
said. "The government will lower administrative fees charged to
enterprises in the transport industry, or give them subsidies."
Jin
estimated, if the reform policy works, the city's government revenue will be
reduced by 9 billion yuan (US$1.42 billion) each year.
Zhang
Yan and Meng Jing
China
Daily
Business & Investment Opportunities
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