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Hu: China expands domestic demand to counter crisis
(Xinhua)
Updated: 2009-11-13 19:04

SINGAPORE: Chinese President Hu Jintao said here Friday a stimulus package aimed at lifting domestic consumer demand had underpinned China's efforts to counter the international financial crisis.

Hu: China expands domestic demand to counter crisis
China's President Hu Jintao speaks during the APEC CEO Summit in Singapore November 13, 2009. [Agencies]
Hu: China expands domestic demand to counter crisis

"We adopted a stimulus package and relevant policies and measures, and have improved them in the course of their implementation," the Chinese president told the Asia-Pacific Economic Cooperation (APEC) CEO Summit. "Our focus in countering the crisis is to expand domestic demand, especially consumer demand."

The Chinese president admitted that the international financial crisis had brought unprecedented difficulties and challenges to the Chinese economy, prompting the Chinese government to modify its macroeconomic policies and introduce a proactive fiscal policy and a moderately easy monetary policy.

Hu said China's efforts in countering the crisis had several main elements.

First, it had sought to expand domestic demand to strengthen the momentum of development.

The massive government investment and the non-public capital it generated had been mainly channeled to projects related to people's well-being, the environment and technological innovation in China, he said.

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"We have been working hard to improve the consumption environment, adjust distribution relations, increase people's ability to spend and foster new areas of high consumer demand," said the Chinese president.

"We have reduced burdens on both enterprises and individuals through structural tax cuts and provided greater credit support to enterprises," Hu told some 1,000 Asia-Pacific business leaders.

All these measures were designed to foster a new pattern of economic growth driven jointly by consumption, investment and export, he added.

Second, it deepened reform to unleash economic vitality.

"We have intensified reform in priority areas and key links, including the price of resource products, fiscal and taxation regimes, the financial system and state-owned enterprises with a view to spurring creativity in the whole society," Hu told the business leaders.

Third, the government had aimed to improve people's livelihoods to consolidate the foundation of development.

"We have given priority to undertakings concerning people's well-being in the economic stimulus measures and pooled resources to accelerate relevant key projects," Hu said.

"We are making every effort to address issues concerning the immediate interests of the people, such as employment, medical care, housing, old-age support and environmental protection," he added.

China had also intensified efforts to improve the social safety net and substantially raised social security benefits, Hu added.

Fourth, the scope of opening-up had been expanded to pursue mutually beneficial progress.

"While making efforts to stabilize exports, we are also upgrading and transforming the processing trade sector and improving our trade structure. We have been expanding imports, with a special focus on advanced technologies and equipment, key spare parts as well as important energy resources and raw materials," said the Chinese president.

"We are implementing the free trade area strategy at a faster pace and actively promoting regional economic integration. We want to share with other economies the benefits of expanded markets and deeper vision of labor," Hu added.

These policies and measures had produced good results. "They have enabled us to maintain the momentum of steady and relatively fast economic growth and set the stage for sustained growth of the economy," said the Chinese president.

"China cannot achieve development in isolation from the world, and the world needs China for development. A more developed China will bring more opportunities and make a greater contribution to the world," he told the business leaders.

The series of measures China has adopted to counter the international financial crisis was conducive to the steady and relatively fast growth of the Chinese economy and the international effort to alleviate the impact of the crisis and restore world economic growth, he said.

It had also provided more opportunities for other countries and the business community of the Asia-Pacific region, Hu added.

The Chinese president arrived in Singapore on Wednesday for a state visit and the 17th APEC Economic Leaders' Meeting.

The APEC CEO Summit, which opened here Friday, provided a platform for top CEOs in the Asia-Pacific region to hear from APEC leaders and international policy and business leaders on addressing the present financial crisis.

The theme of this year's APEC CEO Summit is "Rebuilding the Global Economy: Crisis and Opportunity," focusing on how to counter international financial crisis, revive the world economy and strengthen enterprise management.

 

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