China rural income growth could slow to 0.5 pct this yr: industry group

SHANGHAI (AFX-ASIA) - China Agricultural Machinery Association chairman Lu Zhongmin said growth in China's rural per capita incomes could slow to only 0.5 pct in 2001 if the government is unable to reverse the declining trend of recent years, according to the Guangdong-Hong Kong Information Daily. Lu was quoted as saying in a speech during the recent session of the Chinese People's Political Consultative Conference that rural income growth has slowed by an average of 1.6 percentage points per year over the past five years, and grew by only 2.1 pct last year. In order to reverse this trend, the overnment should introduce policies allowing farmers to trade their land, which would make it possible for agriculture to move towards large-scale production. The government should also consider giving appropriate subsidies to large-scale agricultural producers, he said. He added that despite extensive campaigns aimed at boosting farmers' incomes and reducing their burdens, the government has not yet adopted any policies which get to the root of the problem.

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