The 11th National Committee of the CPPCC held the 14th session in Beijing lately. Taking “accelerating strategic adjustment of economic structure, promoting long-term and steadfast economic development” as its theme, the meeting was presided by the Chairman Jia Qinglin. Vice premier Wang Qishan presented work report. Standing committee member of the CPPCC, standing committee member of the China National Democratic Construction Association, Board Chairman of Tongwei Group Liu Hanyuan attended the meeting, and made constructive proposals on social issues.

Chairman Jia Qinglin said, accelerating strategic adjustment of economic structure, promoting long-term and steadfast economic development is the key requirement brought up by the Fifth Plenary Session of the 17th Central Committee of the CPC. It is also the major issue that needs to be addressed.

Mr. Liu Hanyuan made positive proposals over issues of ‘promoting China’s peaceful rise by a peaceful and calm attitude’, and ‘viewing the current CPI objectively, setting the pace of macro-control with caution ’. He said, since the fast development of the reform and opening up of over 30 years, China has become the No. 1 exporter in the world. While “Made in China” products are found everywhere, they encounter anti-dumping investigations to varying extent by some countries. As China gaining increasing strength and influence, we start to use some counter-measures and strategies such as carrying out anti-dumping investigation over U.S. produced DDGS. These measures, however, could be a double-edged sword. On one hand, some interest groups might take advantage of these measures to gain downstream industry profit for themselves, which would impose heavy burden on the end consumers. On the other hand, more importantly, this means increases trade frictions between China and other countries, which in turn puts China in the disadvantage of ‘holding a narrow vision and intolerant attitude’. These could cause disharmony between China and the rest of the world, which would further adversely affect China’s future development. So China needs to take a more peaceful, tolerant attitude and be clear and broad minded to fulfill and implement the duties and international morality as a responsible major power, and fully respectively take into consideration interest and demands of other countries.

Mr. Liu further continued, we need to objectively look at the current CPI and set the pace of macro-control with caution. China’s CPI rose 5.5 % in May, which was the highest record in the past 34 months. However, the pork price per se rose 40.4% compared with the same period of the previous year, which constitute a 20 percentage rise contribution to CPI, accounting for 1 - 2.5 % in the CPI. According to the statistics from the Ministry of Agriculture, pork price in last May – June fell to the lowest, and rose to the summit during May – June this year. Disregarding this year-on-year rise, the CPI figure of this May actually fell on 4.5 to 3, which was at the normal level. Taking into the consideration of continuing decreasing growth speed of the month-on-month CPI in May, the previous retrenchment policies have shown effective results on inflation control, and the government has achieved control over price hike. The overall national economy still runs within a steadfast growth range, so the national authorities at this point should not misjudge the current CPI level, nor be misguided by the figure on the surface.