Page last updated at 17:04 GMT, Thursday, 28 January 2010

Davos2010: China says domestic demand 'key'

Li Keqiang
Li Keqiang has been tipped as the next Chinese Premier

China's vice-premier, Li Keqiang, has told a forum at the World Economic Forum in Davos that domestic demand is key for China's economic growth.

Reflecting international concerns, he said China had been "excessively reliant on investment and export".

Mr Li pointed out that domestic spending improved in 2009, with sales of consumer goods up 15.5% last year.

He said the government had already taken successful steps to boost consumer demand.

For example, they had introduced a plan to subsidise home appliances, such as TVs and fridges, for farmers which had encouraged spending.

Mr Li, who is tipped to replace China's premier Wen Jiabao, also said it was vital to raise the living standards of poorer rural communities.

China's economy has grown rapidly but the development has been uneven across the country - with jobs concentrated in the coastal regions.

Nearly 10 million people move from countryside to cities every year, according to Mr Li. He said income in the central and western areas was still very low.

Other countries are keen for China to start importing foreign-made goods in order to help the broader global economic recovery.

No mention was made of its own currency, the renminbi, however. China has come under international pressure to revalue because it is felt to be artificially low, disadvantaging competitors.

"Everyone wants China to play by global rules, rather than go its own way - and revalue its currency as a first step", said the BBC's Economics editor Stephanie Flanders. "But in their public remarks today, Chinese officials gave little indication of wanting to play ball."



Print Sponsor


RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific