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Economist: Expanding domestic demand crucial to China's economy

By Nie Peng (chinadaily.com.cn)
Updated: 2008-12-22 10:01

Five series of awards, which were sub-awards to the "100 People China Economic" award unveiled in January, on Saturday were conferred to 173 personages for their contributions to China's economic development in the past thirty years. Zhan Guoshu of People's Daily delivers an opening speech at the awarding ceremony. [chinadaily.com.cn]

Expanding domestic demand is crucial to steering China out of the ongoing world financial crisis and conducive to the economy in the long run, said renowned economist Li Yining after receiving an award in Beijing on Saturday.

"Personally, I think [to cope with the crisis] the key is expanding domestic demand," Li said. "Expanding domestic demand will lay a foundation for the long-term healthy development of China's economy."

Li was honored as one of the "thirty personages who have influenced China's economy during the thirty years of reform and opening-up", which was part of a series of awards sponsored by the news journal China Economic Weekly. Li is well-known for his economic theories and proposals on China's enterprises and shareholding system reforms.

Li Yining speaks after being honored as one of the "thirty personages who have influenced China's economy during the thirty years of reform and opening-up", Dec 20, 2008. [chinadaily.com.cn]

Thirty years ago, China started its reform and opening-up drive after putting an end to the tumultuous "cultural revolution (1966-76)" that had risked putting the country's economy on the verge of collapse.

Li said economists were not prophets and nobody knew how to build socialism with Chinese characteristics back in 1978. "But everybody desired reforms," he recalled.

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Now that the financial meltdown is again threatening the nation's well-being, Li said authorities should make efforts to ease the grave employment situation, including helping farmers-turned- workers that have been laid off to get new jobs.

Factory closures in southern China have forced millions of migrant workers to return to their hometowns earlier than usual this year due to declining overseas orders. Many of the workers have failed to get back their wages from employers, leading to protests and even scuffles with the police in some cases.

Li said the government must pay close attention to and solve problems pertaining to people's livelihood. When such problems are settled, "people will have no family worries and expanding consumption will then be possible," he said.

In particular, China should gradually increase farmers' income and eventually eliminate the urban-rural gap, he said.

In October, the country's top leadership set a goal of doubling the per capita disposable income of rural residents from the 2008 level and eliminating absolute poverty by 2020.

Ni Runfeng speaks after being honored as one of the "thirty personages who have influenced China's economy during the thirty years of reform and opening-up", Dec 20, 2008. [chinadaily.com.cn]

Ni Runfeng, former board chairman of Sichuan Changhong Electronics Group Corp, who was granted the same award, called for more investment in basic industries and in core technology to get prepared for a new economic boom when the crisis is over.

Cheng Siwei, another winner of the award and also vice-chairman of the Standing Committee of the 10th National People's Congress, said 2009 would be the most difficult year for China. He called for measures to maintain growth, promote employment, adjust economic structure and stimulate consumption.

Cheng Siwei speaks after being honored as one of the "thirty personages who have influenced China's economy during the thirty years of reform and opening-up", Dec 20, 2008. [chinadaily.com.cn]

"In 2011, we'll embrace the spring for China's economy as well as for the world's economy," he said.

More than 80 well-known entrepreneurs attended Saturday's awarding ceremony, attracting journalists from more than 130 media organizations. Five series of awards, which were sub-awards to the journal's "100 People China Economic" award in January, were conferred to 173 personages for their contributions to China's economic development in the past thirty years. The candidates were recommended by expert panels and voted by netizens and readers in the duration of a year.