China boosts domestic demand

Chinese Finance Minister Xie Xuren said yesterday the government was working to boost domestic demand to counter the financial crisis, although the economy faced "daunting challenges".

"The Chinese Government's basic approach is to expand domestic demand, particularly consumer demand, to promote growth," he told the annual meeting of the Asian Development Bank on the Indonesian resort island of Bali. "These measures are paying off and positive signs are appearing, better than expected."

However, Xie said much needed to be done still.

"China still faces a sharp decline in exports, over-capacity in some industries, slow recovery in industrial growth, drop of economic returns, reduction in fiscal revenue and severe pressure on employment," he said.

He said the government would take measures to ensure stable growth.

Xie's comment comes after data has shown signs that the world's third-biggest economy may be on the road to recovery from the global financial downturn.

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