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People's Daily Online>>Opinion

China should further boost domestic demand

By Ye Xiaonan (People's Daily Overseas Edition)

16:41, January 20, 2012

Edited and Translated by People's Daily Online

China has great potential in domestic demand

China has great potential to increase its domestic demand, as more than 1 billion Chinese are witnessing their standards of living approaching those in the developed world. This process will release huge potential for domestic demand growth, and is crucial to properly evaluate the development potential of the Chinese economy, said Zhang Liqun, a senior researcher at the Development Research Center of the State Council.

He explained that economic growth could bring about steady and rapid growth in employment and income, which can transform consumption potential into a larger consumer market.

Although the proportion of consumption in China’s GDP is relatively low, the annual growth of the country’s household consumption has long been above 10 percent. China’s domestic consumption has maintained and will continue to maintain steady and rapid growth along with its GDP growth, which will bring substantial benefits to both the Chinese and global economic development.

China's domestic demand o will grow steadily in 2012

In 2012, gloomy global economic situation worsened by the European debt crisis will reduce the overseas market demand and therefore China will have a very limited room for expanding its export. Meanwhile, the slowdown of the investment in the real estate will hinder the investment in the fixed assets and China's growth engine will face a certain risk of slowdown. But, the consumption will continuously boost China's economic growth.

Zhang said that, affected by the gloomy global economic growth and China's macroeconomic control policies, the growth rates of China's export and investment will both decrease in 2012.

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wende at 2012-01-2071.255.83.*
China should strive to take on the export by coming out with higher value, design and own trademark which should be in words that westerners can easily pronounced. Words like "xin" or "qian" should not be on the tag as westerners have a hardtime remember them or even pronounce them.

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