Panel discusses roadblocks on China's path to economic recovery (4)

13:49, August 10, 2010      

Email | Print | Subscribe | Comments | Forum 

Taking measures to boost consumption

Q: What suggestions do you have on the focus of the second-half policies?

Zheng Xinli: I suggest that effective measures should be taken to boost domestic demand, particularly domestic consumption. In terms of income distribution policies, it should first coordinate various regions to gradually raise the minimum wage standards in accordance with a medium-term plan to leave proper time for enterprises to handle the pressure brought about by the rising wages and prevent the overly fast rise in wages from affecting the survival and development of enterprises.

Second, the grain purchase price should be lifted to increase the incomes of farmers. Earlier this year, stated-owned grain warehouse operators and private grain enterprises fiercely competed with each other in purchasing wheat from farmers. Given the situation, the government should raise the minimum grain purchase price to benefit farmers. Third, the government should encourage listed companies to distribute more dividends to investors in order to the boost the property incomes of residents and prop up the confidence of investors.

We have provided financial subsidies for rural residents on the consumption of appliances since 2009 and the policy has played an exemplary role in the expansion of rural consumption. I suggest that in the second half of 2010, electric bicycles should also be included in the coverage of financial subsidies on mechanical and electrical products in rural areas.

Regarding the investment policy, we should focus on increasing investments conducive to expanding consumption. We should increase the land supply and new construction areas of affordable housing, and ensure that the affordable housing already under construction will be completed on time. We should also make efforts to inhibit the overly-rapid growth of ordinary commercial housing prices through increasing the supply of affordable housing. We are expected to gradually achieve the target of "living with one's own house" and maintain the sustainable development of the real estate industry and it’s enduring pulling power towards the overall economy through the structural adjustment of housing construction.

Wang Jun: We should take accelerating the transformation of the economic development mode and adjusting the economic structure as the core of future macro-control. We should adopt stronger measures to expand domestic demand. Especially, we should put expanding residents' consumption at a prominent position and devote major efforts to develop the modern services sector, particularly the productive services sector, accelerate innovations committed to the structural adjustment, and take developing new strategic industries as the focus and breakthrough of mode transformation and structural adjustment.

By People's Daily Online
Additional support provided by LOTO

【1】 【2】 【3】 【4】


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Staff members watch a screen showing the blast-off of the Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module at Beijing Aerospace Control Center, Sept. 29, 2011. Commander-in-chief of China's manned space program Chang Wanquan announced Thursday night that the launch of Tiangong-1 space lab module was successful. (Xinhua/Wang Shen)
  • Chinese President Hu Jintao watches the launch of Tiangong-1 space lab module at Beijing Aerospace Control Center in Beijing, capital of China, Sept. 29, 2011. Other members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, including Wu Bangguo, Jia Qinglin, Li Changchun, Xi Jinping, Li Keqiang and Zhou Yongkang, are also present. (Xinhua/Rao Aimin)
  • The graphics shows the launch procedures of the carrier rocket of Tiangong-1 space lab module, Long March-2FT1 on Sept. 29, 2011. (Xinhua/Lu Zhe)
  • Image taken from Beijing Aerospace Control Center shows a Long March-2FT1 carrier rocket loaded with Tiangong-1 unmanned space lab module blasting off from the launch pad at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 29, 2011. (Xinhua)
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
Hot Forum Discussion