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NPC & CPPCC Annual Sessions > Biz & Economy > News
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China boosts domestic demand, spurs growth to fight crisisBy (Xinhua)
Updated: 2009-03-09 20:44 The two annual sessions of Chinese lawmakers and advisors currently being held in Beijing against the backdrop of the world financial crisis is in the spotlight of world attention. Chinese Premier Wen Jiabao's pledge in his government report on the occasion that China would zealously boost domestic demand and spur economic growth will enhance confidence and hope for the world economy in fighting the current crisis.
As external demand has shrunk considerably, spurring domestic demand becomes a vital option for China to maintain economic growth. In the meantime, China sets the goal of achieving a roughly 8-percent economic growth this year, which is of paramount importance for creating jobs and maintaining social stability. To counter the economic crisis and achieve the goal of economic growth, the government has announced several policy packages, including the 4-trillion-yuan ($580 billion) economic stimulus plan unveiled last November, and the plan to revitalize 10 critical industries announced successively in the past two months. China's stimulus measures are also part of the global campaign to stave off the financial crisis, as maintaining its own relatively fast economic growth is China's largest contribution to the world economy. China's effort to stoke domestic demand would benefit the world economy as it could increase import, International Chamber of Commerce Chairman Victor Fung told French newspaper Le Figaro. Tokyo Shimbun, a Japanese daily, said in a recent editorial that the Chinese market has substantial room for further growth, saying that China's move would be vital for Japan's economic recovery. Though the global financial crisis has yet to bottom out, China's efforts have borne fruits. China's purchasing managers' index (PMI) for manufacturing, a main indicator of the sector's activity, rose for three consecutive months, implying a pick-up in the country's manufacturing sector. The financial crisis is still snowballing, but as Premier Wen said in his government report that challenges always coexist with opportunities, and hope arises exactly where difficulty abounds. Wen expressed confidence that China would overcome the difficulty and respond well to the challenge. Such confidence should also be cherished by the whole world. No matter how severe the crisis is right now, it will eventually come to an end. With proper monetary and fiscal stimulus policies, the world economy will finally get out of the mire.
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