China announces more economic refoms

China has announced several economic reforms planned for next year, including the gradual elimination of lending quotas for state banks.

The minister for Economic Restructuring, Li Tieying, was quoted in the official People's Daily newspaper as saying that credit quotas would start disappearing from next year.

The quota system dates back to the centrally planned economy of the l950's, but correspondents say it is now one of the biggest obstacles to commercial banking, prompting the accumulation of huge quantities of bad debt.

As the Asian economic crisis continues, Beijing is reported to be trying to promote sound lending practices.

From the newsroom of the BBC World Service