China

Vice Premier calls to boost domestic demand

English.news.cn   2012-02-15 23:47:19

BEIJING, Feb. 15 (Xinhua) -- Chinese Vice Premier Li Keqiang has called for more efforts to expand domestic demand so as to speed up economic restructuring.

Li made the remarks in an article to be published Thursday in the new issue of Qiushi, or "Seeking Truth," the flagship magazine of the Communist Party of China.

The government should continue to properly handle relations between speed, structure and prices, creating a favorable environment for boosting domestic demand, Li said.

According to Li, the country faces important strategic opportunities, and its huge market potential will be an enduring drive to economic development.

The greatest potential of domestic demand lies in urbanization, the process of which will boost both investment and consumption, he said.

But farmers' wills and interests should be respected and arable land should be protected when pushing forward urbanization, he added.

The service sector has the most potential among other industries, acting like a container that absorbs workforce and as a critical force that promotes technological innovation, he said.

Therefore, the government should accelerate the development of the service sector, especially the modern service industry, and rely on innovation to invigorate the economy, Li said.

Meanwhile, the government should prioritize projects that concern people's livelihoods, as investing in the sector is an act of restructuring the economy and an effective measure to boost demand, Li said.

Li also stressed the importance of related mechanisms, saying that the government should combine development and reform, strengthen top-level design and coordination, and respect public initiatives so as to make breakthroughs in reform and opening up.

Li said it is imperative to properly handle the relation between social undertakings and industries, protecting social welfare while pushing forward marketization of some industries.

Editor: Mu Xuequan
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