The "Economic Daily" published here today published an article titled "Current Macro-control Situation and Tasks" by the Economic Comprehensive Department of China's National Development and Reform Commission. 

The article believes that China's economic development has started well this year, and the national economy continues to maintain a momentum of rapid growth. However, it should also be noted that while the economy is growing rapidly, some prominent contradictions and problems in economic development since last year have not been effectively alleviated, and some are still developing. Mainly in: investment demand further expansion. In the first quarter, the total investment in fixed assets increased by 43% year-on-year, an increase of 15.2% year-on-year. Blind investment in some industries continued to grow, with investment in steel and cement more than doubled in the first quarter. Investment in real estate development continued to grow rapidly. Local investment, especially in coastal areas, has grown too fast. Investment in eastern areas has increased by 47.8 percent, accounting for 64.2 percent of the national total. 

Loans are still too large. At the end of March, the broad money supply M2 increased by 19.2 percent year-on-year, an increase of 0.7 percent over the same period last year, a slight drop from the end of the previous year, but still running at a high level. In the first quarter, financial institutions increased RMB loans by 834.2 billion yuan, changing the situation that the monthly increase since the fourth quarter of last year decreased year-on-year, with an increase of 23.8 billion yuan year-on-year. Foreign exchange loans continued to increase rapidly, with an increase of USD 9.4 billion in the first quarter, an increase of USD 4.2 billion year-on-year. 

Electricity, coal and transport tensions intensified. In the first quarter, electricity production increased by 15.7 percent. Power generation equipment continues to operate at overload, and the hourly utilization rate of thermal power generation equipment has reached the highest value over the years. However, there are still power cuts in 17 provinces, and the power shortage situation in East China and South China is further exacerbated. Coal supplies are becoming increasingly tight. In the first quarter, coal production increased by 14.4%, but it still could not meet the needs of rapid growth. 

Inflationary pressures are increasing. Driven by the rapid growth of investment, the overall price level of means of production in circulation increased by 14.8% year-on-year in the first quarter on the basis of the 8.1% increase last year. The overall level of consumer prices in the first quarter rose by 2.8%, of which the impact of rising food prices such as grain accounted for 2.4%. In addition, rising prices of resource products such as iron ore, alumina and cotton in the international market have also increased domestic production costs. 

The article said that among the above problems, the most prominent is that the scale of fixed asset investment is too large, especially some industries are growing too fast. If these problems cannot be effectively solved and they continue to develop, the contradiction between resources and the environment will become more prominent, the contradiction of unreasonable structure will be exacerbated, and a large amount of excess production capacity will appear. 

The article emphasizes that, in response to the outstanding problems in the economic operation, we must follow the deployment of the central government to further improve the macro-control work. First, we must unify our thinking, and unify the thinking of all aspects into the central government's deployment of economic work, and conscientiously implement the various measures of the central government's macro-control. Second, we must clarify the key points. The key point is to control the excessive growth of investment, ease the contradiction between the supply of coal, electricity and oil, and the supply of important raw materials, and strengthen weak links such as agriculture and food production. Third, we must deepen reforms, speed up the separation of government and enterprises, give better play to the basic role of the market in allocating resources, and resolutely correct the government's interference in corporate activities. Mainly use economic and legal means, and take necessary administrative means to ensure the powerful and effective macro-control. Fourth, we must make overall plans and, in accordance with the requirements of the "five overall plans", pay more attention to agricultural and rural economic development, social undertaking development and ecological environmental protection; pay more attention to transforming the mode of economic growth, adhere to the unity of speed, structure, quality and efficiency, and adopt economical measures resources and environmental protection. 

At the same time, according to the development and changes of the current situation, further targeted control measures will be taken to strictly control the start of new projects and carefully clean up the projects under construction. Comprehensively use various monetary policy tools, strengthen credit management, and moderately control the growth of money and credit. Strictly control the scale of land use, and carry out in-depth land market governance and rectification. Do a good job of agricultural production, especially grain production, and strengthen grain market regulation. Strengthen the adjustment of economic operation, and do a good job in the connection between coal, electricity and oil transportation and the supply and demand of important raw materials. Strict price supervision and regulation, and crack down on behaviors that disrupt the market order.