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OPINION> Commentary
Balanced development
(China Daily)
Updated: 2008-12-31 07:49

In the face of challenges posed by the financial crisis, we should maintain a proper balance between production and consumption, and between investment and consumption, says an article in the People's Daily. The following is an excerpt.

The challenges China's economy is confronted with also bring us a rare opportunity. The key issue is how we can handle them - how we can maintain a proper balance between production and consumption, and between investment and consumption.

For years, China's economy was fueled by investment, especially huge investments in the secondary sector that consumed large amounts of resources and energy. But this will not make development sustainable. That poses the problem of total supply greatly exceeding total demand. That is to say, the growth mode that separates investment from consumption is problematic.

In fact, production and investment should not be separated from consumption. Consumption is production, namely, the process to consume is the process to produce. Consumption is a process by which a product becomes a real one, and consumption is also the motive and goal of production and investment.

The concept of "expanding production" has been well accepted. We will have to establish the concept that "consumption is production".

(China Daily 12/31/2008 page8)

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