China to boost domestic demand
China will focus on boosting domestic demand rather than exports to sustain their economic growth, according to Yao Jingyuan, chief economist at China’s National Bureau of Statistics.
“The world’s economy is recovering, but it will need more time. So China should basically rely on increasing domestic demand and expanding its home market to drive its economic growth,” he said.
China, along with other countries experiencing account surpluses, will look to re-balance their economies by turning to internal stimuli rather than relying on export sales.
Despite Yao’s remarks, some exporting manufacturers have faced labour shortages as external demand begins to increase.
Economists are more concerned with the undervaluation of the yuan, although it is likely the pegged exchange rate will remain for some time.
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