VZCZCXRO0109
PP RUEHCN RUEHGH RUEHVC
DE RUEHBJ #4418 3421134
ZNR UUUUU ZZH
P 081134Z DEC 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC PRIORITY 2887
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
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E.O. 12958: N/A 
TAGS: CH ECON EFIN ENRG ETRD SENV
SUBJECT: CHINA'S CENTRAL ECONOMIC WORK CONFERENCE CONCLUDES 
WITH FOCUS ON DEVELOPING A MORE BALANCED ECONOMY 
 
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¶1. (SBU) Summary: A National Development and Reform 
Commission (NDRC) Macroeconomic Policy expert told econoff 
December 8 that the concluding emphasis of the Central 
Economic Work Conference was on continued economic expansion 
that promotes stability while at the same time conserving 
resources and improving China,s &quality8 of growth.  The 
conference, which concluded on December 7, was convened to 
set economic goals for 2007.  A state-run media report listed 
specific objectives arrived at by conference participants, 
including: reduction of the balance of payments surplus 
through promotion of imports and overseas investments; 
development of the rural economy; strengthening of energy 
conservation; boosting of technological progress and 
innovation; balancing of regional economic development; and 
continuing reforms in China,s state sector and financial 
system.  End Summary. 
 
Focus on Balance in the Economy 
------------------------------- 
 
¶2. (SBU) Xinhua reported a move away from the emphasis on 
rapid growth rates that dominated previous years, meetings. 
There was increased attention to bringing balance to the 
economy on multiple fronts.  Conference participants 
concluded that China should strengthen its promotion of 
imports and overseas investments to reduce its balance of 
payments surplus.  There were also calls for China to raise 
domestic consumption and to achieve greater balance in 
investment and consumption across different sectors of the 
economy.  Other economic concerns addressed included the 
relatively weak agricultural sector and investment that 
creates a risk of financial market volatility.  The 
government,s major goal is to continue the country,s 
economic growth without experiencing huge boom-busts cycles. 
 
Emphasis on Economic Stability 
------------------------------ 
 
¶2. (SBU) Zhang Haiyu, Director for the Macroeconomic Policy 
Department of the NDRC,s Institute of Economic System and 
Management, told econoff December 8 that the Central Economic 
Work Conference,s major goals are to continue growing with 
economic stability, but at the same time, preserve resources 
and improve China,s quality of growth.  Specifically, the 
government will continue strengthening its macroeconomic 
controls, promote rural economic development, conserve its 
natural resources, proceed with economic structural reforms, 
promote government administrative reforms, and balance 
regional economic development between China,s east and west. 
Randt