Premier Li Keqiang focuses on consumption (2)

As part of the 12th Five-Year Plan (2011-15), the government has vowed to expand domestic consumption to help the nation transform its economic growth model away from an overreliance on exports.

China is facing two unprecedented transformations. One is for a nation of 1.3 billion people to complete its modernization process. The other is the challenge that it has to address and implement policies that will ensure this, especially concerning climate change, green development and environmental protection, said Li.

Vice-Premier Zhang Gaoli said on Sunday at the opening of the forum that China will "deepen its reform and opening-up policies with greater courage and more wisdom" even with increasing downward economic pressures.

Sustaining robust economic growth is a major concern, said analysts.

A GDP growth target of 7.5 percent was set for this year.

On the way to maintaining sustainable economic growth, China is facing "huge opportunities and complicated and severe challenges," and "we have to rely on domestic consumption in the long-term," with "urbanization" being a major contributor to it, Li said.

But he pointed out that domestic consumption is, in itself, not enough to stimulate the economy, and "efficient supply" created through the opening-up to foreign businesses is "vital to meet demand".

Where Chinese companies lag behind their foreign counterparts, in particular, is service and green industries, he said.

The foreign direct investment that helped to transfer technology and create jobs has long been a driver to the economy. China is the second-largest nation worldwide next to the United States as an FDI destination, and has ranked as the most attractive FDI recipient among emerging markets for many years.

Li emphasized the significance of providing an equal and transparent environment for foreign businesses, saying that China will formulate and standardize rules and regulations to protect intellectual property rights and commercial secrets.

"We encourage fair competition, mutual cooperation and support," he said.

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