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

13:49, August 10, 2010      

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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
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(Editor:黄蓓蓓)

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