State Development Planning Commission Vice-Minister Wang Chunzheng said yesterday in Beijing that as the rising number of new workers and unemployed outweighed the number of new jobs, unemployment has become a major challenge to the Chinese economy.

Wang made the remarks in a report on the national economy and social development to the Standing Committee of the National People's Congress.

Official figures show the rate of urban unemployed remained within 4 percent in the first half of this year.

Meanwhile, the number of workers laid off from state-owned enterprises was 4.64 million at the end of June, down by 510,000 from the end of 2001. The monthly average figure of registered unemployed was 3.48 million.

The vice minister said China would pay special attention to the resettlement of workers laid off from bankrupt military factories, over-exploited coal and nonferrous metal mines.

The government would make great efforts to develop the labor-intensive service industries, such as catering and tourism, concentrate on training programs and offer job aid for the unemployed with special difficulties.

Meanwhile, the Chinese government will find ways to regulate the national tax market, and strengthen the tax management of individuals, companies and some commercial products in order to reach its national financial target this year.

He said the central government's income increased by 5 percent in the first seven months, while the targeted growth rate was 7.7 percent.

Official statistics show that China's national income grew 10.6 percent during the first seven months this year, a slower rate than last year. While the targeted growth rate of the national financial income was 10 percent.

National expenditure increased 18.7 percent year-on-year, which is higher than the growth rate of its earnings.

The slowing income increase was a new phenomenon in China's economic situation, said Wang, contributing the reasons to the lowered tariff of China after the entry of the World Trade Organization, as well as to the adjusted tax rates in the securities exchanges and financial insurance business.

Wang said during the second half, the government will strengthen tax management in all aspects so as to increase its financial revenue.

(eastday.com August 28, 2002)