Effective trade policies have put China on the fast track of foreign trade growth under a supportive global economic climate, according to Wang Chunzheng, vice-minister of the State Development Planning Commission (SDPC).

Wang told a press conference of the 10th National People's Congress on Saturday that the recent strategy to diversify trade destinations and to continually improve product quality helped jump-start the nation's imports and exports last year, which both recorded a skyrocketing growth of more than 20 per cent.

Wang said that another major contribution to last year's excellent trade performance was the sharply increased exports and imports of private and foreign-funded enterprises, a result of the reforms of the nation's foreign trade system in recent years.

"Needless to say, China's World Trade Organization entry also created a favourable international climate for the nation's foreign trade in 2002," said Wang.

The senior government official predicted that the global economy will witness a gradual recovery, but he said mounting political and economic intrigues around the globe could impede the nation's foreign trade.

China projects a prudent 7 per cent growth in the area this year, a figure which takes into consideration the fierce competition of the global market and emerging trade protectionism, Wang told the press conference.

"It also appears tougher to achieve another record growth on the huge base built on last year's outstanding performance," said Wang.

Regarding domestic trade, the official said that China will continue its proactive fiscal policy to stimulate the economy by further promoting domestic demand and pushing rural consumption.

Wang denied market speculation that signs are emerging that government is considering shifting its focus of fiscal stimulus as this year's planned treasury bonds of US$140 billion yuan (US$16.87 billion) are 10 billion yuan (US$1.2 billion) less than last year's budget.

Wang said this year's figure, in actuality, equals last year's figure because a surplus of last year's 10-billion-yuan treasury bonds has been refunded into this year's tally.

He said that both central and local governments have strengthened measures to well regulate the use of treasury debts.

"Although some cases of improper usage have been found in some places, they represent only a tiny percentage," said Wang.

"Treasury bonds are very precious. We are paying very close attention to the supervision of State coffers," he added.

(China Daily)