China to take more steps to soften growth

With the economy not showing any signs of cooling, China is prepared to take further steps to check the relentless flow of Foreign Direct Investment (FDI), besides placing curbs on local lending.

"China will take more steps to curb investment and lending," Premier Wen Jiabao said. "The Government will control excess liquidity and further boost domestic consumption," Wen said.

China has been trying to engineer a smooth landing amid nagging fears that record high trade surplus is sending asset prices, especially that of property, soaring while strong FDI may lead to excess capacity.

"The country will further regulate real estate," Wen told the annual meeting of the National People's Congress in Beijing.

The Chinese economy, which accounts for about a tenth of global GDP growth, grew by 10.7% in 2006, the fastest pace in 11 years. China is planning an 8% growth in 2007.