China aims to expand domestic demand, ensure speedy recovery

BEIJING (Reuters) – China will strive to expand domestic demand, ensure a speedy economic recovery and promote stable growth, according to an interim report on China’s 14th five-year plan published by parliament on Wednesday.

The country will “prioritise the restoration and expansion of consumption, stabilise bulk consumption and promote consumption of services,” Zheng Shanjie, head of the state economic planning body, was quoted as saying at a meeting held on Tuesday.

China will also accelerate reforms aimed at expanding the country’s middle-income bracket, Zheng said.

The government has in recent months unveiled a series of measures to shore up a feeble post-pandemic economic recovery, held back by a property slump, local government debt risks and slow global growth.

China will deepen its market-oriented reforms and institutional opening up to boost development, according to Zheng.

The country will also prevent and resolve risks in key areas……” co-ordinate the resolution of risks in real estate, local government debt, and small and medium-sized financial institutions.”

Zheng also said China needs to step up its development of high technology to overcome a blockade on technology exports imposed by some countries.

“(China) must accelerate breakthroughs in key core technologies, achieve a high level of scientific and technological self-reliance, and avoid technologies and industries being ‘locked’ in the low-end and middle-end.”

(Reporting by Liangping Gao, Ella Cao and Kevin Yao; Editing by Hugh Lawson and Sharon Singleton)

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