In the second half of this year and next year, the general guiding concept for economic regulation should be watching out for accumulative unhealthy and uncertain factors and highlighting the consumption-led structural adjustment while maintaining the recovery trend, said Xia Bin, chief of the Financial Research Institute at the Development Research Center of the State Council, to People's Daily recently.
At present, China's most serious structural imbalance is the "high savings versus low consumption." China, the soon-to-be second largest economy in the world, must expand its own consumption and gradually form an internal circulation linking its domestic economic output and consumption in an independent circle.
China should not only highlight investment policies, but also prioritize consumption policies which have been a difficult issue to resolve for a long time.
In addition, the central bank should stabilize the credit policies from the second half of 2009 to 2010. A moderately relaxed monetary policy will continue. However, to which extent this moderately relaxed policy will extend should be further determined in order to ensure that this policy mainly satisfy the real economic growth demand.
This in turn requires policies to encourage residents to set up their own businesses, attract private capital into the real economy investment sector, and encourage the development of small and medium-sized enterprises.
By People's Daily Online
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