The Chinese government is expected to take further measures to expand domestic demand next year in a bid to maintain sustained, rapid and healthy economic growth.

Minister Zeng Peiyan in charge of State Development Planning Commission pledged a policy package aimed at stimulating domestic demand at a national meeting on development planning which opened here today.

Zeng made a comprehensive analysis of the outcome of this year' s macro-economic policy and remaining problems, and put forth main goals and tasks for economic and social development next year.

As investment, consumption and export have been effectively increased as a result of the central authorities' policies, economic growth is now estimated at seven percent or above this year, well meeting the previous projection, Zeng said.

Conditions for the nation's economic and social development are improving and more opportunities have emerged with the upturn of the world economy and the successful conclusion of Sino-US negotiations on China's entry to WTO, Zeng said.

To tackle the problem of insufficient demand, Zeng pledged to further gear up investment in fixed assets next year, which will be "markedly more than this year."

The government will concentrate its investment on infrastructure facilities, technological renovation, environmental protection, research and development, education and construction of medium- and low-grade housing, he said.

The government will further make use of fiscal and monetary levers to support economic growth and provide a better policy environment for private investment, the minister said, adding that more funds will be injected into projects in the under-developed western region.

Describing consumer demand as vital to economic growth, Zeng said that the central government has decided to readjust policies on consumption, with previous policies hindering private consumption in power, housing, motor vehicles and telecommunications to be revised and improved next year.

The government will encourage financial institutions to expand consumer credit, exploit the potential in the development of the tertiary industry and take effective measures to increase affordability of both urban and rural residents.

The minister said that China will continue to work to facilitate exports, improve the structure of foreign trade and keep the balance of international payments and the relative stability of the Renminbi exchange rate.

China will also allow more access to the domestic market for foreign investors and open the door wider in the service industry, he said.

Zeng took special notice of a co-ordinated development among different regions, claiming that the central authorities have been determined to "take a substantial step" in promoting development of the western region next year.

Construction of infrastructure facilities will be accelerated in the west, while environmental protection will be strengthened, industrial structure be readjusted and development of science and education be sped up, he said. (Xinhua)