New GDP Target    

CPC, the largest political party of China, recently held its seventeenth conference that is held every fifth year. Hu Jintao, President of China and General Secretary of the CPC Central Committee, set a new target in his report at the conference that the GDP per capita of China in 2020 will be four times that of 2000. This was the first appearance of such a target in CPC's normal report. Five years ago, the sixteenth conference of CPC submitted a report that included a target that the GDP of China in 2020 would be four times that of 2000, without the phrase of per capita. Due to a huge population of China, GDP per capita index better reflects the benefit status of citizens in the development of economy, commented an economist. The slight change shows that CPC will pay more attention to the profit, possessions and rights of individuals than ever before.
    A 1.3 billion population can amplify a small problem into a large problem and divide a huge total number into a small number, a high leader of central government said.
    According to the statistics, the GDP per capita in 2000 was RMB7 078, equivalent to around US$856. So it should be US$3 500 per capita in 2020. The target number is based on the rapid development in recent years. During 2003-2006, the GDP has maintained yearly growth of more than 10%. By the end of 2006 the GDP per capita exceeded US$2 000.
    People are worried about the sustainability of the current economy mode that is mainly driven by heavy investment. The new target aims at developing the economy while improving efficiency, reducing resource consumption and protecting environment.
    On October 25th, the National Bureau of Statistics announced publicly that the GDP amounted to RMB16 604.3 billion for the first three quarters, with a growth of 11.5%. CPI also went up by 4.1%. Some analysts projected the GDP will reach RMB23 000 billion, equivalent to Germany's level.
    The winter is coming, the shortage of diesel has spread all over country. LPG price is also out of control. Energy problems will bring more cost pressure to chemical makers and governors. Refineries may be forced to shoulder more responsibility. Everywhere chemical suppliers have announced raising the selling prices of their products.
　　Taihu Lake, which is especially reported for pollutions in August, attracts great concern now. A new discharge standard for the Taihu Lake region has been made public and will take effective on January 1st, 2008. A batch of companies producing heavy pollution will possibly be shut down. The important indexes to be checked in the discharges include COD, phosphorus content, nitrogen content and ammonia nitrogen. The new standards are even stricter than the current state standards. Chemical makers around Taihu Lake are facing big challenges.
　　
　　
   Zhong Weike
November 2nd, 2007