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China stresses domestic demand in stimulating growth

(Xinhua)
Updated: 2009-03-05 10:11

China would make boosting domestic demand a "long-term" strategy and take further measures to stimulate consumer spending, as the country seeks to lead its economy out of a slowdown that started with falling export.

The country would "give a full play" to the "leading" role of domestic demand, particularly consumer demand, in driving economic growth, according to a government work report to be delivered by Premier Wen Jiabao to the second session of the 11th National People's Congress Thursday.

China would actively boost domestic demand by increasing people's income, encouraging auto consumption, tapping the rural market, stabilizing the real estate market, offering proper housing for low-income families and accelerating the reconstruction of areas devastated in the May 12 earthquake last year, says the report distributed to the media before the opening of the session.

The government would raise the proportion of the national income that goes to wages, he said, adding the government would continue to adjust income distribution and increase subsidies to farmers and low-income urban residents.

Wen also said that central government investment, planned at 908 billion yuan ($132.7 billion) this year, would mainly go to projects that could improve people's lives, to create a more favorable environment encouraging people to spend.

"We must channel government investment to areas where it best counteracts the effects of the global financial crisis and to weak areas in economic and social development," he said.