Chinese Growth

Here, the main factors are the following: (a) have prior mortgage crisis in the United States is still uncertain prospects, and its further impact on the major economic groups, such as the United States, it is difficult to predict; (b) will be present even greater fluctuations in major world capital markets, and there will be a substantial devaluation of the dollar; (c) the price of primary products (such as oil, iron ore, copper and corn) on the world market, likely to remain high and even increase. The expected price for crude oil on the world market will be US $ 80-90 per barrel in 2008; (d) further intensify tensions in the area of trade. In China, there is still a crisis due to too rapid economic growth, price pressure is felt even more strongly, and the prospects for energy efficiency and reducing emissions is still vague. In 2005, the Chinese government will pursue consistent fiscal policy and tight monetary policy, it will strictly control the total amount of cash loans and lending rates, to regulate the overall social demand, and improve balance international payments and maintain financial stability and security. Based on data about the economic situation in the domestic market and abroad, we can expect that the oil and chemical industry of China will continue its stable and relatively fast growth in 2008 have major economic indices will experience double-digit growth, but its growth rate to decline slightly. The total value of industrial Production will increase by approximately 18%.