Beijing had planned to invest 37 billion yuan (US$4.4 billion) in 60 major construction projects in 2002. By the end of June, 65.4 percent of the investment had been allocated.

The cross-city light rail project is 95 percent complete, and is expected to begin operating in September.

The subway extension project and the Fifth Ring Road project have been authorized by the relevant ministries. All will start construction before the end of the year.

Based on these transportation facilities, Beijing will establish a convenient transportation network across the city before the start of the 2008 Olympic Games.

Construction of the National Theatre is also proceeding well, and its underground construction phase is expected to be completed by the end of this month.

Other major projects, like old building renovations and water clearance projects, will all be finished on time.

The huge investment has not become a heavy burden on the Beijing government's finances thanks to the development of the local economy, the commission said.

The latest official statistics show that Beijing experienced a 9 percent increase in gross domestic product (GDP) in the first half of this year. That growth brought 27.2 billion yuan (US$3.2 billion) in revenue into the coffers of the municipal government, 25.1 percent higher than the same period last year.

The city enjoyed a 23.4 percent investment increase in the first two quarters, though it was concentrated too narrowly on real estate and on the construction of infrastructure.

Local government is sparing no efforts in pushing the development of the automobile, machinery and high-tech industries, hoping it will bring more foreign investment and boost exports.

Though the prospects for economic development during the remainder of 2002 are good, the planning commission said there are still obstacles to growth.

Beijing's industrial enterprises experienced a slowdown this year, and profits shrank.

The consumer price index continued to descend: It was 7.6 percent less than the same period last year. The government is still searching for an effective way to persuade people to spend.

The registered jobless rate in the urban area reached 1.5 percent by the end of June, 0.6 percentage points higher than the same period of 2001.

The Beijing Planning Commission said local government is carefully researching economic conditions in order to devise a series of policies to address the problems.

Policies such as government investment, industry adjustment and laid-off worker re-employment could be implemented soon to stimulate the development of Beijing's economy.

(China Daily July 16, 2002)