Adjusting economic development

[At the recent Davos meeting] China’s feisty new-generation leader (and premier-in-waiting), Vice-Premier Li Keqiang, declared, “we must change the old way of inefficient growth and transform the current development model that is excessively reliant on investment and exports.”  Beijing is getting serious about boosting internal consumption.


Li announced, “We will focus on boosting domestic demand.” Coming from Washington such words would inspire a yawn. Coming from the future leader of China, the word “transform” demands attention.


Beijing has the resources and power to transform its economy. We’ve seen proof of that in the past year.


Li listed a number of initiatives including a stronger health care safety net and to subsidizing rural poor to buy household appliances. As Li sees it, “The growth in domestic consumption in China will not only drive growth in China but also provide greater markets for the world.” That’s encouraging news for global companies who wish to sell to an increasingly wealthy Chinese consumer, and for Chinese firms looking to expand internally.


http://www.stockmarketsreview.com/news/pay_attention_to_china_s_new_growth_model_20100204_2779/

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