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Chinese political advisor calls for boosting real economy

0 Comment(s)Print E-mail Xinhua, March 6, 2012
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A political advisor on Tuesday called for better development of China's real economy in the wake of financial crisis in the United States and Europe.

"The financial crisis is the outcome of an imbalance between the real economy and virtual economy," said Ren Hongbin, member of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC), China's political advisory body.

Excessive development of the virtual economy can harm the physical economy, Ren said on the sidelines of the body's annual session, adding that the virtual economy is vital only if it serves and bases itself on the real economy.

Real economy refers to the part of economy associated with the actual production of goods and services, including agriculture,manufacturing and service trades. It is regarded as the foundation of a country's comprehensive strength and the material basis of people's livelihoods.

Ren, who is also chairman of the board of directors of the China National Machinery Industry Corporation (SINOMACH), said high-quality development should be promoted in the country's real economy, especially in the manufacturing sector.

In the meantime, the government should shield listed companies from the "non-real economy" and prevent excessive speculation to avoid an economic bubble, Ren said.

In a report delivered to the country's parliamentary session on Monday, Premier Wen Jiabao said the government will effectively reduce the financing costs of the real economy, which Ren referred to as "positive news for the real economy."

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