China to Boost Domestic Demand

Premier Wen Jiabao of China said that the government is set to spur more domestic demand in order to address some of the "structural problems" of its economy.

"We can rely on stimulating domestic demand to stabilize and further grow the Chinese economy," Wen said.

The Chinese Premier also said that growing inflation and corruption may destabilize the country but vowed to implement reform of the country's political system.

Even before the global economic downturn, Wen had said that his country's economic growth "lacks balance, coordination and sustainability."

"This financial crisis has reinforced my view on this point," Wen added.

The economy of China has risen more than 90 times of its original size during the last 30 years behind exports to countries like the United States.

U.S. officials such as Treasury Secretary Timothy F. Geithner have encouraged Chinese leaders to turn to domestic markets for additional growth.

Geithner has also criticized China's policy on its currency, saying that the yuan is undervalued and not gaining fast enough which gives Chinese exporters an undue advantage.

The U.S. trade deficit with China increased from $123 billion for the first seven months during 2009, to $145 billion during the same period this year.

Wen criticized the added pressure on China to lift the yuan's value.

"Some people in the United States, in particular some in the U.S. Congress, do not know fully about China," Wen said. "They are politicizing the problems in China-U.S. relations."

The Chinese Premier said that his country's objective is to "have balance and sustainable trade with other countries."

Posted by EmpoweredNews on Sunday October 03 2010, 5:25 PM EST. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0