Chinese President: China Will Not Sacrifice Environment For Short-Term Growth

Gosh, where was I?

Oh, yeah . . .

China’s President Xi Jinping indicated a tolerance for slower expansion to avoid environmental degradation, adding to signs that the government will limit temporary boosts for the economy as officials map out plans for market-based changes to drive long-term expansion.

The country won’t sacrifice the environment to ensure short-term growth, Xi said during a study session of the Communist Party’s top leadership on May 24. His comments follow a statement issued on the same day that the State Council, or cabinet, which is chaired by Premier Li Keqiang, approved a series of measures aimed at revamping the economy.

China’s new leaders may be reluctant to implement stimulus to reverse an unexpected slowdown in first-quarter growth after a 4 trillion yuan ($586 billion at the time) package to support the economy during the global financial crisis led to inflation, a housing bubble and industrial overcapacity. Since taking office in March, Li has pledged to cut government interference in the economy, give market forces more power and boost the role of private companies.

“The government is showing a much bigger tolerance for lower growth because they understand that China’s potential growth rate is slowing and that concerns about the environment are rising,” said Lu Ting, chief China economist at Bank of America Corp. in Hong Kong. “One of the reasons we cut our growth forecast is because protests over environmental issues are leading to the cancellation or delay of a lot of investment projects.”

EDIT

http://www.businessweek.com/news/2013-05-26/xi-joins-li-in-indicating-china-tolerance-for-slower-growth-rate