The Ministry of Commerce said on Monday that government measures to boost consumption since the beginning of the year are working well. The Ministry says it will continue making efforts to increase domestic consumption.
China's retail sales reached 290 billion yuan during the lunar new year holiday week, a 13.8 percent jump compared to that of last year.
Vice Commerce Minister, Jiang Zengwei, said the measures retail companies have taken include the development of new products and the expansion of selling channels.
The minister also pledged to boost rural consumption.
Jiang Zengwei said, "The consumption environment for both urban and rural residents needs to be improved. Despite the pressure, we must see that the income of our residents is increasing, and their consumer habits are changing. China's household savings have reached more than 21 trillion yuan, a huge number. We also have a vast market with 1.3 billion people. This is the engine for economic development."
Jiang Zengwei added that the global financial meltdown is having an increasing impact on Chinese consumption. But recent stimulus measures will pave the way for a recovery in spending.
Jiang also says that China will not attach a "Buy China" requirement to its fiscal stimulus package, and hopes other countries will resist protectionism.
Jiang Zengwei said, "Every country should support international trade, or support large amount of commodity circulation. This is one of the best ways for each nation to meet consumer demand. I don't think China will implement a 'Buy China' requirement. As long as there is demand, we will treat domestic and foreign products the same way."
Figures show that nearly 20 percent of the Chinese market relies on overseas supplies. And the country still needs to import a huge amount of wheat and soybeans from the US, Canada, and Australia to meet domestic demand.
(CCTV February 11, 2009)
